EPFO Update- Good news for EPFO members. The central government is preparing to give big relief to the employees of the organised sector. According to sources, the minimum monthly pension given under EPS (Employees’ Pension Scheme) can be increased from Rs 1,000 to Rs 3,000. This decision can be implemented in the next few months.
Employees’ Pension Scheme (EPS) is a government scheme, which is operated under EPFO (Employees Provident Fund Organization). In this, pension is given every month after retirement from the job, due to which employees get regular income in old age. Out of the company’s contribution to the employee’s PF, 8.33% goes to EPS and 3.67% goes to EPF.
Why is it necessary to increase the pension? It is difficult to survive on a pension of Rs 1,000 in today’s time. Inflation is constantly increasing – In the last 11 years, the inflation rate (CPI) has increased by 72%. Many retired employees and organisations have long demanded that the government increase the pension. How many will get the benefit? Currently, there are 78.5 lakh pensioners under EPS. Out of these, 36.6 lakh people are dependent on the minimum pension of just Rs 1,000. If the pension is Rs 3,000, then crores of elderly people will get relief.
Previous efforts- In 2020, the Ministry of Labor had sent a proposal for a pension of Rs 2,000, which was not approved by the Finance Ministry. Before the 2025 budget, EPS pensioners had demanded Rs 7,500, but no concrete assurance was received. What next- The Ministry of Labor is currently analyzing the additional expenditure on this proposal. In FY24, Rs 1,223 crore was spent for EPS minimum pension, which is 26% more than last year.
Experts’ opinion- According to Akhil Chandna, partner of Grant Thornton, increasing the pension will provide great relief to low-income retired employees and their families. BJP economist Sandeep Vempati said, “ILO (International Labor Organization) also advises to link pension to inflation. If the government makes the minimum pension of EPS Rs 3,000, then it will be a big relief for lakhs of elderly pensioners. In the era of rising inflation, this decision can prove to be a big step towards leading a respectable life for them.
