Private sector employees covered under the EPFO (Employees' Provident Fund Organisation) have consistently demanded an increase in the minimum monthly pension under the Employees' Pension Scheme 1995 (EPS-95). Currently set at ₹1,000 per month since 2014, pensioners are seeking an increase to ₹7,500, coupled with dearness allowance (DA). This article explores the ongoing developments, including recent discussions with Finance Minister Nirmala Sitharaman and the contrasting viewpoints of stakeholders.
EPS-95 pensioners have been advocating for an increase in their minimum pension for over seven years. Despite repeated appeals, the minimum pension remains at ₹1,000, which is widely considered inadequate to cover basic expenses. On January 10, 2025, a delegation of EPS-95 pensioners met Finance Minister Nirmala Sitharaman to reiterate their demand for a minimum monthly pension of ₹7,500 with DA.
The EPS-95 scheme, managed by the EPFO, was introduced to provide post-retirement financial support to employees.
Employer Contribution: Employers allocate 8.33% of the employee's basic pay towards the EPS, while 3.67% is contributed to the EPF scheme.
Minimum Pension History: The Centre fixed the minimum pension at ₹1,000 in 2014. However, over 36.60 lakh pensioners reportedly receive less than this amount due to various discrepancies.
The EPS-95 National Agitation Committee issued a statement following their meeting with the Finance Minister.
Sympathetic Review: Sitharaman assured the delegation that their demands would be reviewed with a sympathetic approach.
Hope for Budget Announcements: Pensioners are optimistic that the 2025 Union Budget will include provisions to address their demand for a ₹7,500 minimum pension along with DA and free medical treatment for pensioners and their spouses.
Trade unions also raised the issue of minimum pension during pre-budget consultations with the Finance Minister.
Union Proposal: Trade unions advocated increasing the minimum EPFO pension to ₹5,000 per month—five times the current amount but significantly lower than the ₹7,500 proposed by the EPS-95 National Agitation Committee.
EPS-95 Committee’s Stance: The EPS-95 National Agitation Committee criticized the unions' demand, deeming it insufficient to meet pensioners' basic needs.
The demand for ₹7,500 as the minimum monthly pension stems from several pressing concerns:
Cost of Living: With inflation and rising living costs, ₹1,000 per month fails to cover basic expenses like healthcare, housing, and food.
Dearness Allowance: Pensioners argue that DA is crucial to mitigate the impact of inflation on their limited income.
Fair Distribution: Given that employers contribute 8.33% of basic pay to EPS, pensioners believe the current allocation system is inequitable.
Despite assurances from the government, no definitive timeline or policy changes have been announced yet. The EPS-95 pensioners, backed by their National Agitation Committee, continue to press for immediate action, emphasizing the urgent need for relief.
Conclusion
The ongoing debate around the minimum pension under EPS-95 highlights the critical need to address pensioners' financial security. As Budget 2025 approaches, all eyes are on the government to deliver a long-overdue revision that aligns with the demands of pensioners and ensures a dignified post-retirement life.