In fact, it would snap a long-standing relief to lakhs of pensioners. A government-appointed panel proposed an increase in the minimum monthly pension under the Employees’ Pension Scheme (EPS) from ₹1,000 to ₹7,500. If this proposal passes muster, it will lend greater strength to the pensioners, who have long demanded that the existing base figure needs to be revised upward as it fails even to meet the basic living expenses of an individual.
The Employees’ Provident Fund Organisation (EPFO) administers the EPS. Currently, the EPS has a minimum of ₹1,000 as monthly pension. This figure has remained unchanged for all of its years. With a rise in inflation and the cost of living almost roaring, that has left a majority of the pensioners struggling in the basic ends to make the amount meet their basic needs.
EPS Pension Hike
The recommendation is indeed a very overdue amendment. An increase to ₹7,500 would mean that retired employees-from the low-income category-would enjoy fairly dignified income after retirement. The hike would cover over 65 lakh EPS pensioners across the nation.
Labour unions welcomed the proposal along with retiree associations, who want the central government to act hastily on the recommendations. Many argued that it would improve senior citizens’ living standards and restore faith in the social security system.
EPS Pension Scheme Update
The proposal for the increase is under consideration at the moment, and the decision to impose it will depend upon the approval of the government, the availability of the budget for such expenditure, and consultation with stakeholders. Other issues raised regarding the hike included whether it was financially viable for such a vast increase and if the contributions by employers and government had to be changed in regard to the fund.
What Comes Next?
However, if the proposal is moved forward, the EPFO is likely to issue new guidelines defining conditions regarding the eligibility, contribution changes, and terms for payments. It is advisable for pensioners to keep all their papers in order and keep their ears closely attuned to the announcements made by EPFO.
Conclusion
If the proposed raise in the EPS minimum pension from ₹1,000 to ₹7,500 takes place, the change will be revolutionary for lakhs of retirees in India. It will bring the economy considerably near the dignity of existence for the old among Indian populations.
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