As per reports, in a big step which could benefit millions of pensioners, the government is considering revising the minimum pension under Employees’ Pension Scheme (EPS) to include amounts as high as ₹10,000 per month. The proposal attempts to provide financial relief to retired employees whose pensions tend to fall short of the daily need.
Reasons Justifying The Rationale Behind Pension Hike
Currently, the scheme has set a minimum pension amount of ₹ 1,000 under EPS-95. However, this figure is stagnant for as many years as one can imagine, and the people seem to live in poverty trying to meet theirs with so little with continued rising inflation rate. Employee unions and pensioner associations keep their demand for a substantial hike in the pension amount consistent.
A committee appointed by the government has been in deliberation on this proposal for a few days now. However, keeping the constant rise in the cost of living in mind, the government might have to increase the minimum pension amount to ₹10,000. This is going to bring very much needed relief from naivety to pensioners so that they would be able to enjoy their latter days.
For Whom Will The Pension Increase Be Beneficial?
- EPS-95 Pensioners: The hike will primarily be directed towards EPS pensioners, especially those having pension of a minimum ₹1,000.
- Family Pensioners: Dependents and family members will highly inherit such an increase as the beneficiary of the pension is deceased.
- Low Salaries Grossed Employees: The employees will now pay a significantly higher monthly pension in respect of low wages paid by both private and unorganized sectors.
Financial Repercussions On The Government
Pension increase would require a supplement from the Government and Employees’ Provident Fund Organisation (EPFO) for the increase in pensions. Such funds probably would be released by the government to fill the gap so that the pensioners could get the promised minimum pension of ₹ 10,000.
When Will The Hike Be Implemented?
Though no timeline has been officially confirmed about it yet, discussions are moving on. The proposal could be announced in the upcoming budget or during the next parliamentary session. Pensioners are hopeful about a positive decision in the immediate future.
Conclusion
The proposed 10,000 rupees pension hike will come as a big relief to pensioners and save several of them. While it could greatly improve the quality of life for retired employees, especially those belonging to low-income backgrounds, it is likely to be the end for some high-and-mighty people. Waiting eagerly for the announcement of this big and significant government decision are pensioners and their families.
Stay Tuned to EPFO for the Latest Updates for the Pensioners Further Official AnnouncementsMade from the Ministry of Labour and Employment.
Also Read: Govt. Employees Pension Update: Commuted Pension To Be Restored After 12 Years