EPS Pension Boost Major updates: Long demand for enhancing the minimum Pension of Employees’ Pension Scheme (EPS) from Rs 1,000 to Rs 7,500 is found taking another turn for calling in the claim that due to inflation, dearness allowance should also be awarded to the profit.
What Is The Demand
There has been an age old demand for revision in the minimum pension of an Employee Pension Scheme (EPS) from Rs.1, 000 to Rs.7, 500. Recently, a parliament standing committee urged the Ministry of Labor to complete the third-party evaluation of EPS soon, which is showing a ray of huge hope.
Employees’ Pension Scheme Was Launched In 1995
The Employees’ Pension Scheme was initiated in 1995 with the objectives to provide a fixed monthly pension to employees post-retirement. In 2014, the EPFO fixed the minimum pension amount at Rs 1000 and has not revised it since. In these years, inflation has risen many times, but the pension has remained static. However, for the first time the review process has also been initiated by a third party for the scheme. Also, a Request for Proposal (RFP) has been floated for this review, and the process has begun and is expected to be completed within the stipulated time.
What Is The Demand Of Pensioners?
Via EPS-95, the National Committee of Retired Employees is demanding an increase in the minimum pension amount to Rs 7500 per month. They also say that due to inflation, the profit of the dearness allowance should be given. This is the earlier proposal reiterated by pensioners. In 2020, a proposal to increase the minimum pension to Rs 2000 was sent to the Ministry of Finance, which was rejected. Now the proposal is under discussion again after being included in the budget of 2024-25.
Impact In Future
The parliamentary committee is of the view that cost-wise, there have been a very large number of occasions when cost of living across the country has considerably increased, and therefore now it has become necessary to have this pension increase done (hike in the employees’ pension). If this is pushed through, then the pension amount will rise directly from Rs 1,000 to Rs 7,500.
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