EPS Pension: If you work in the private sector and PF is deducted every month, then this news is for you. The government is planning to increase the minimum pension. Currently, under the Employees' Pension Scheme (EPS), a monthly pension of Rs 1000 is available, which is proposed to be increased to Rs 3000. 78 lakh pensioners have been demanding this for the last several years. Pensioners are expected to get relief from this.
The decision may be implemented in the next few months-
According to the news, the government may decide to increase the pension for retired employees in the next few months. If this decision is taken, it will benefit lakhs of retired employees. In the year 2014, the pension was increased from Rs 250 to Rs 1000. If it is increased to Rs 3000, then the employees will get relief. No official statement has come in this regard yet.
Why is it necessary to increase the pension?
Let us tell you that the need to increase the minimum pension to Rs 3,000 has been felt for a long time. In 2020, the Labor Ministry sent a proposal to increase the minimum pension to Rs 2,000 to the Finance Ministry. But it was not approved at that time. Before the general budget for the year 2025, retired employees of EPS met Finance Minister Nirmala Sitharaman and demanded to increase the minimum pension to Rs 7,500, at that time assurance was given on this. The total fund of EPS is more than Rs 8 lakh crore. There are 78.5 lakh pensioners under the scheme, out of which 36.6 lakh people get a minimum pension of Rs 1,000. This amount is not sufficient due to rising inflation. Review of additional expenditure-
Parliamentary Committee's advice-
In early April, a parliamentary committee headed by BJP MP Basavaraj Bommai had asked the Labor Ministry to immediately increase the minimum pension to Rs 1,000. The committee said that the cost of living has increased manifold. Akhil Chandana, partner, at Grant Thornton India, said, "Increasing the pension will be a good step. It will especially support low-income retired employees and their families.''
What is the opinion of the experts?
According to economist Sandeep Vempati, inflation has increased by 72% in the 11 years from 2014 to 2025. The International Labor Organization (ILO) recommends regularly adjusting pensions according to inflation. But due to global economic uncertainty and the government's financial goals, there is uncertainty over the amount and timing of pension increase.
What is EPS?
The Employee Pension Scheme (EPS) is a retirement scheme operated by the Employees' Provident Fund Organization (EPFO). It provides regular income to organized sector employees after retirement. The EPS fund is part of the employer's 12% contribution to the Employees' Provident Fund (EPF). Out of this, 8.33% goes to EPS, and the remaining 3.67% is deposited in EPF.
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