To enhance social security for retired employees in the private sector, the government has approved a long-awaited augmentation in the Employees’ Pension Scheme (EPS) under the Employees’ Provident Fund Organisation (EPFO). Starting 2025, the minimum monthly pension under EPS will be raised to ₹7,000 with Dearness Allowance (DA), thereby bringing great relief to pensioners across the country.
Key Decision By The Government
The government has for definite approved a hike of the EPS base pension that has been on the table for consideration for several years. The proposal was received with renewed vigor from trade union and employee associations. The new government approved the EPS minimum increase of ₹1,000 to ₹7,000 per month. She has also ensured that Dearness Allowance is integrated into the pension amount, thus keeping pace with inflation and securing better economic status for pensioners.
Who Will Benefit?
This decision is likely to impact more than 6 million EPS pensioners, of which around 80 percent have private sector affiliation with a modest monthly pension. Many retirees are having trouble meeting basic living expenses with the old pension structure; hence, the increasing minimum pension has come long overdue to remedy such challenges and ensure a dignified existence post retirement.
Inclusion Of Dearness Allowance
One of the more remarkable changes is the introduction of Dearness Allowance with EPS pension. From now on, DA will be calculated and added to base pension of ₹7,000, which will empower him to accommodate price rise with time. This inflation-link is a major shift in the pension policy.
Timeline For Implementation
Formal notification by the Ministry of Labour and Employment in association with EPFO will make way for the new pension structure by mid-2025. All states have been advised to prepare for smooth rollout in order to avoid delays in disbursement of the revised pension amount.
Conclusion
The 2025 EPFO pension hike will be a landmark reform in India’s social security framework. The government has indeed signified this commitment with a raise in the minimum EPS pension to ₹7,000 and the inclusion of DA. Providing much-needed financial relief, this move would also reinforce trust in EPFO and the larger pension system.
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