EPFO Minimum Pension : Hello friends, the Employees Provident Fund Organization is currently discussing the increase in the minimum pension under the Employees’ Pension Scheme (EPS – 95). Let us tell you that the minimum pension is going to increase by ₹ 1000 and talks are going on to make it ₹ 7500 or ₹ 9000. If the proposal is passed and implemented, then private employees are going to get a lot of benefits.
Every employee working in a private job remains quite tensed about pension. This is because government employees get a good pension after retirement, whereas private employees are not given a good pension after retirement.
However, important news has come that the employees working in private companies are going to receive ₹ 7500 as minimum pension. Which is currently only ₹ 1000, although there is a lot of discussion on increasing it.
Demand for increasing minimum pension
Recently, information has come to light that trade unions and pensioners’ organizations have been demanding for a long time that the minimum pension be increased to ₹ 7500 per month. In September 2014, the minimum pension amount was fixed at ₹ 1000 under the Employees’ Pension Scheme run by the Central Government’s EPFO.
Under EPS, employees will deposit 12% of their basic salary in the Provident Fund while the same amount is contributed by the employer. Out of the contribution by the employer, 8.3% is deposited in EPS and 3.67% goes into the EPF account.
What the report said
We are going to discuss here what has been said in the report, in which the previous recommendation has been reiterated by the committee and it has been said that how much increase in cost in 2024 as compared to 2014 and keeping in mind the relevant reasons, various types of suggestions were put before the committee during the oral meeting held in 2023. It is necessary to consider increasing the minimum pension of ₹ 1000 under 1995.
The Committee said that despite the financial implications, it is necessary for the Ministry of EPFO to do this work promptly and to cover a wide area of affected pensioners and family members.
Considering all this, the evaluation of the scheme by a third party is happening 30 years after its inception. This work of recommendation by the committee should be completed within the stipulated time i.e. by the end of this year i.e. 2025 so that the effectiveness can be assessed.
