There is news of relief for crores of pensioners of the country. The Central Government is considering increasing the minimum monthly pension from ₹ 1,000 to ₹ 7,500 under the Employees Pension Scheme (EPS). This proposal has been demanding pensioners and trade unions for a long time, which has now been taken seriously by the Parliamentary Standing Committee.
EPS-95: Brief introduction to pension scheme
The Employees Pension Scheme (EPS) started on 16 November 1995. It aims to provide monthly pension to the employees of the organized sector after retirement. Under this scheme, the employer contributes 8.33% of the salary of the employee and the central government 1.16%. Currently, the minimum pension is ₹ 1,000 per month, which was determined in 2014. Since then there has been no amendment in this amount, while inflation has increased significantly.
Recommendations of Parliamentary Committee
The Standing Committee of Parliament headed by BJP MP Basavaraj Bommai has recommended the Ministry of Labor to complete the assessment process by third parties of EPS by the end of 2025. The committee believes that the cost of living in the last three decades has increased manifold, causing inadequate pension of ₹ 1,000. Therefore, the committee has suggested to increase the minimum pension to ₹ 7,500.
Demand for pensioners
EPS-95 National Movement Committee and Other Pensioners Association have long been demanding:
The minimum monthly pension should be ₹ 7,500.
Dearness allowance (DA) should be included in pension.
Free medical facilities should be provided for pensioners and their spouses.
High pension application process should be improved.
On 10 January 2025, a delegation met Finance Minister Nirmala Sitharaman on these demands. The Finance Minister has assured to consider these demands sympathetically.
Status of Ministry of Finance
In 2020, the Ministry of Labor sent a proposal to the Ministry of Finance to increase the minimum pension to ₹ 2,000, which was rejected. However, before the budget of 2025, EPS-95 pensioners have again placed their demands before the government.
potential impact
If the government increases the minimum pension to ₹ 7,500, it will be a major relief for pensioners. Currently, more than 36.60 lakh pensioners are receiving less than ₹ 1,000 pension. The increase in pension will help the elderly live and improve their financial condition.
conclusion
The possibility of increasing minimum pension under the Employees Pension Scheme is a ray of hope for pensioners. If the government accepts the recommendations of the committee, then this step will be helpful in improving the standard of living of pensioners. Now everyone’s eyes are on the evaluation of EPS and the final decision of the government by the end of 2025.
