It is being reported these days that the Employees’ Provident Fund Organization (EPFO) is mulling a considerable increase of EPS minimum pension. According to these reports, the government may consider raising the minimum EPS pension to ₹7,500, which will actually alleviate some of the financial burdens that old-age people now have. If this proposal gets its approval, then this hike will benefit millions of such retired employees all across India. Here are all the important things that you should know about the proposed hike.
Current EPS Pension Structure
At present, the EPS minimum pension amounts to ₹1000 per month and is assumed generally to be not enough to afford survival within the bounds set on it by trusting completely. Because of this inadequacy, such meager amount has led to demands from labor unions and pensioners’ associations for a big hike in the amount of the pension for many years.
Proposed Pension Hike-Key Details
- The government is considering a proposal under which minimum pension would be raised to ₹7,500.
- In that case, the hike would benefit the EPS pensioners who subscribe to the EPFO scheme.
- The hike will make the retirees and their families financially better off.
- The government, EPFO, and the stakeholders have a final word on it.
Why Is The Pension Hike Needed?
- Rising Cost of Living – The whole generation has been subjected to inflation, making prices rise so high for senior citizens that the pension amount isn’t worth its while.
- Demand of Pensioners- Various pensioners’ groups have been arguing that a minimum amount of ₹7,500 is necessary for living with dignity after retirement.
- Improved Social Security – The government wants to make social security more secure to all retired employees with good funds that can help them maintain their health and meet their daily expenses.
Who Will Enjoy Benefits Due To The Hike?
- All retired employees under EPS.
- Family pensioners such as widows and dependents receive pensions.
- Employees who have completed the prescribed service period under EPFO and EPS.
When Will The Decision Be Finalized?
The discussion is on the financial viability of the proposed hike. An official announcement would be made in the next few months just before the budget or general elections.
Conclusion
A minimum pension of ₹7,500 would certainly serve as great relief for retirees suffering financially. Now, they are waiting for the final decision and timing of implementation from the government.
Also Read: Fitment Factor Hike 2025: How Much Will Govt Employees’ Salary Increase?