EPFO News: Relief is expected for pensioners before Diwali. The minimum pension under the EPFO's EPS-95 scheme may be increased from ₹1,000 to approximately ₹2,500, providing financial security and growth to pensioners receiving the minimum pension.

EPFO News: As Diwali approaches, pensioners are expecting an increase in their income. In particular, there is a demand for an increase in the minimum pension under EPS-95 (Employees' Pension Scheme 1995), which is currently fixed at ₹1,000 per month. Given the current inflation and rising cost of living, this increase will prove to be a significant relief for pensioners.

According to sources, the EPFO's Central Board of Trustees (CBT) may meet in Bengaluru between October 10 and 11. This meeting will likely be chaired by the Union Labor Minister, and may discuss minimum pension increases, improvements to EPF and EPS accounts, and other financial reforms.

Minimum Pension Hike: From ₹1,000 to ₹2,500?

Various trade unions have been demanding that the minimum pension be increased to ₹7,000. However, current realistic estimates suggest that the new minimum pension could be around ₹2,500. This increase would be welcome for pensioners and practical for the government. If implemented, the monthly income of those receiving the minimum pension would increase by 2.5 times. This benefit will primarily accrue to pensioners currently receiving the minimum pension, while those receiving higher pensions will not be affected.

What is the EPS-95 Scheme and Why is it Important?

EPS-95 is a social security scheme that combines employer contributions (8.33% of salary) and government support (1.16% of salary, up to ₹15,000 per month). Under this scheme, the government ensures a minimum pension so that pensioners' income is not affected if there is a shortfall in contributions and fund figures. The annual evaluation of the EPS fund reveals that the system is under pressure from an octuary deficit. This means that future promised benefits will not be met by current contributions and returns. The government bridges this gap through the minimum pension.

Potential Impact for Pensioners

Increasing the minimum pension to ₹2,500 will increase financial security.
Considering inflation and the cost of living, this would be a positive signal from the government.
The increase may take time to be implemented or may be phased in.

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