EPS Pension Hike To Rs 7,500 Under Consideration For Private Sector Workers

Private sector employees covered under the Employees' Provident Fund Organisation (EPFO) have long been demanding for an increase in their minimum pension, which has remained constant at Rs 1,000 per month since 2014. Recently, their demand has gained momentum, with a delegation of EPS-95 pensioners recently meeting Finance Minister Nirmala Sitharaman on January 10 to push for a revised pension of Rs 7,500 per month, along with dearness allowance (DA).

A Long-Pending Demand

The Employees' Pension Scheme (EPS-95), managed by the EPFO, was introduced in 1995. In 2014, the central government set the minimum pension at Rs 1,000 per month. Since then, pensioners have repeatedly requested the government to increase this amount, arguing that it is insufficient to meet the rising expenses. Their demands also include dearness allowance and access to free medical treatment for both pensioners and their spouses.

The EPS-95 National Agitation Committee, which has been at the forefront of this movement, stated that during the meeting with the Finance Minister Nirmala Sitharaman, she assured the delegation that their requests would be reviewed sympathetically. The committee has since urged the government to take decisive action and announce a pension hike as quickly as possible.

Demand Of Labour Organizations

While EPS-95 pensioners are demanding a minimum pension of Rs 7,500 per month, trade unions who participated in a pre-budget consultative meeting with the Finance Minister recommended increasing the pension fivefold to Rs 5,000 per month. However, the EPS-95 National Agitation Committee criticized labour organizations for proposing a lower amount, calling it inadequate to meet the basic financial needs of pensioners.

According to the committee, despite the government's 2014 decision to set a minimum pension, over 36.60 lakh pensioners continue to receive less than Rs 1,000 per month. They argue that a substantial increase is necessary to ensure financial security for retirees who rely on the EPS-95 scheme.

What Is EPS ?

The Employees' Provident Fund (EPF) is a retirement savings scheme where members contribute 12 per cent of their basic salary towards their provident fund, with their employers matching this contribution. However, the employer's contribution is split, with 8.33 per cent allocated to the Employees' Pension Scheme (EPS) and the remaining 3.67 per cent going into the EPF account.

Since the minimum pension was set at Rs 1,000 per month in 2014, no revisions have been made, despite inflation and rising living expenses. Pensioners argue that an increase to Rs 7,500 per month, along with DA, is necessary to help them cope with financial hardships in retirement.

Will The Government Hike Minimum Pension To Rs 7,500?

With mounting pressure from pensioners and labour unions, the government is expected to consider revising the EPS pension. The Finance Minister's assurance of reviewing the demand has sparked hope among pensioners. However, whether the government will meet their expectations remains uncertain.

If implemented, an increase in the minimum pension to Rs 7,500 would be a significant relief for millions of retired private-sector employees who have struggled with stagnant pension benefits for years.