Higher EPFO Pension on the Way? Plans for ₹7,500 Minimum Pension by Gov
The Employees’ Provident Fund Organisation (EPFO) is about to reform pension disbursal by discussing elevating the minimum pension to ₹7,500 per month. If allowed, this move will bring a lot of financial respite to millions of pensioners under the Employees’ Pension Scheme (EPS). This proposal aims to ensure better social security for the retired who are presently getting a very low pension.
Why Do We Need the Pension Hike?
Pensioners under the EPS-95 scheme presently receive pensions of only ₹1,000 per month, which is an insignificant amount considering the increase in cost of living. The long-standing demands of inflation and rising costs of health care have compelled pensioners to ask for a revision in minimum pension payouts. Putting the proposed raise in minimum pension to ₹7,500 per month would mean better financial stability for retired employees who are dependent on EPFO for their livelihood.
Various employee unions and retiree associations have been fighting for this pension increase for years now. They argue that a higher pension would help the pensioners maintain a decent quality of life without any financial strain.
What is the Plan of the Government?
The central government and EPFO are assessing the feasibility of putting the 7,500 minimum pension scheme into effect. The proposal is under review, with discussions about how this extra funding would be handled. A major question up for discussion is how much more, if anything, the government will contribute to support the increase, or whether the employers will be required to raise their contributions toward the Employees’ Pension Scheme.
If the proposal were to be accepted, then the incrimination of this pension would directly benefit lakhs of pensioners who have contributed towards the EPF during their entire working span. The government is also mulling over providing a higher pension option for those who have contributed over and above the basic EPS limits, so that all categories of pensioners are afforded an equitable set of benefits.
When will the Decision Be Made?
The final word on the ₹7,500 minimum pension shall come after discussions between the Ministry of Finance, Ministry of Labour, and EPFO officials. Approval for the proposal will bring a significant increase in the monthly pension payouts for pensioners almost very soon.
Retirees and EPF members are encouraged to stay abreast of further developments and official announcements, as this envisaged change has the potential of drastically enhancing the financial security of millions of pensioners across the country.