Government Considering Hike in Minimum Pension for EPS-95 Pensioners

The government is reportedly reviewing an appeal to raise the minimum pension for private-sector employees covered under the Employees’ Provident Fund Organisation (EPFO). Currently set at ₹1,000 per month, the Employees’ Pension Scheme (EPS-95) beneficiaries are seeking a substantial increase. A delegation of pensioners met Finance Minister Nirmala Sitharaman on January 10, 2025, during a pre-budget consultative meeting, requesting a minimum monthly pension of ₹7,500, a dearness allowance (DA) hike, and free medical treatment for pensioners and their spouses. The minister assured that their demands would be reviewed.
Trade unions also participated in the discussions but advocated for a lower increase to ₹5,000 per month, which sparked criticism from the EPS-95 National Agitation Committee. The committee argued that the proposed amount was inadequate and failed to meet the basic needs of pensioners. Despite the government’s 2014 announcement to fix the minimum pension at ₹1,000, the pensioners’ body revealed that over 36.60 lakh beneficiaries still receive less than this amount.
Under the EPF scheme, employees and employers each contribute 12% of the basic salary to a retirement corpus, with 8.33% of the employer’s share directed towards the EPS. The pensioners have long highlighted the insufficiency of current payouts, emphasizing the need for reforms to ensure a dignified post-retirement life.
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