EPFO Minimum Pension Increase: According to media reports, EPFO can keep the interest rate of EPF between 8% and 8.25% for the financial year 2024-25.
EPFO Minimum Pension Hike: There has been a long-standing demand for increasing the minimum pension under EPFO for private sector employees. In September 2014, the Central Government announced a minimum pension of Rs 1,000 per month for pensioners covered under the Employees’ Pension Scheme (EPS) run by the EPFO.
Under EPF, employees deposit 12 per cent of their basic salary in the Provident Fund, while companies also have to contribute the same amount. 8.33% of the amount deposited by the company goes to EPS, and 3.67% goes to the EPF account.
What is the demand of EPFO members? The pensioners’ body, the EPS-95 Agitation Committeee, has said that Union Labor Minister Mansukh Mandaviya has assured timely action on their demands, including minimum pension under EPS-95. A statement by the pensioners’ body said that the central government has taken a positive stand on the long-standing demands of more than 78 lakh pensioners under EPFO across the country.
According to the statement, apart from minimum EPS pension, the pensioners’ body has demanded an increase in minimum pension, free medical facilities for retired people and their spouses and correction of errors in applications for higher pension benefits.
Further, the statement said that the minister has assured the delegation of an early resolution of these issues. The EPS-95 National Agitation Committee (NAC), which has been fighting for the rights of pensioners for many years, said that after the recent discussions with the Center, there is hope that the minimum pension under EPS-95 will finally be revised after 10 years.
Will the minimum pension increase in 2025?
Ahead of Budget 2025, a delegation of EPS-95 retired employees met Finance Minister Nirmala Sitharaman and reiterated the demand to increase the minimum pension to Rs 7,500 per month as well as add a Dearness Allowance (DA). According to the EPS-95 National Agitation Committee, the Finance Minister assured the delegation that their demands would be considered.
For the last 7-8 years, pensioners have been continuously demanding an increase in their pension. They want the current pension of Rs 1,000 to be increased to Rs 7,500 with the benefit of DA. Apart from this, they also want free medical facilities for retired employees and their spouses.
What will happen in the next meeting of EPFO?
The meeting of the CBT (Central Board of Trustees) of EPFO is going to be held on 28 February 2025, in which the interest rate on Provident Fund deposits for the financial year 2024-25 will be decided. Although the interest rate will be mainly discussed in this meeting, the issue of pension increase can also be important in this meeting.
Pensioners and social workers who have been contributing to EPF for a long time are calling the current pension amount inadequate. They say that given the current inflation and rising medical expenses, the minimum pension of Rs 1,000 received every month is very less. The pressure on the government to meet this long-standing demand of increasing the pension is increasing continuously. Now, all eyes are on the next CBT meeting, in which a big decision can be taken regarding increasing the pension.
Will a fixed interest rate be applicable on EPFO?
The government is considering implementing a fixed interest rate scheme for EPFO account holders so that they can get fixed returns despite fluctuations in the stock market.
Will the government create an interest stabilization fund?
According to a report by the Economic Times, the government is considering a plan to create an Interest Stabilization Reserve Fund for the EPFO. Its purpose is that account holders continue to get a stable interest rate irrespective of the investment performance. The Ministry of Labor and Employment is studying the feasibility of this proposal.
What will be the interest rate of EPF for 2024-25?
According to media reports, EPFO can keep the interest rate of EPF between 8% and 8.25% for the financial year 2024-25.
What big decisions are expected to be taken in the CBT meeting?
The Central Board of Trustees (CBT) of EPFO, headed by the Union Minister of Labor and Employment, is the highest decision-making body of the organization. It includes employer associations, trade unions and officials of the central and state governments.
The process of determining the interest rate is as follows:
EPF interest rate for 2023-24
For the financial year 2023-24, EPFO has revised the interest rate from 8.15% in 2022-23 to 8.25%. It will be decided in the next CBT meeting whether any change will be made in the interest rate or not. This meeting can prove to be very important for EPFO account holders, so all eyes are on this meeting, in which important announcements related to Provident Fund can be made.
