EPS minimum pension
For a long time, employee organizations across the country have been demanding to increase the minimum pension under the Employees’ Pension Scheme (EPS) from Rs 1,000 to Rs 7,500 per month. However, at present the Central Government has not taken any decision to accept this demand or increase the minimum pension. In response to a question asked in the Lok Sabha, Minister of State for Labor and Employment Shobha Karandlaje made it clear that the government is committed to providing better social security to EPFO members, but along with this the financial strength of the pension fund and future liabilities are also being kept in mind.
Issue of Rs 7,500 pension raised in Parliament
Lok Sabha MP Bhausaheb Rajaram Wakchore asked the government whether the minimum pension of Rs 7,500 per month and dearness allowance (DA) is being considered as per the long-standing demand of the EPS-95 National Agitation Committee.
The government in its reply said that at present no decision has been taken to increase the minimum pension from the current Rs 1,000. Also, the government did not tell whether any deadline has been set in this regard in future or not.
Government told how EPS fund works
The Labor Ministry told the Parliament that the money in the Employees’ Pension Fund comes mainly from two sources. First, a contribution of 8.33% of the employee’s salary from the employer’s side and second, a budgetary contribution of 1.16% from the Central Government on the salary up to Rs 15,000. All pensions and other benefits are paid from this fund. According to the government, the EPS fund is also evaluated every year so that its financial position remains strong.
Is a pension of Rs 1,000 enough?
The MP also raised the question whether in today’s time the monthly pension of Rs 1,000 to Rs 2,000 is enough for the elderly employees to lead a dignified life. On this, the government said that it is providing a monthly pension of at least Rs 1,000 under EPS-1995 through budgetary support. This assistance is in addition to the regular government contribution received by EPFO.
Many new changes in EPS-2026
The government has recently implemented the Employees’ Pension Scheme (EPS), 2026, which has replaced EPS-1995. Many new provisions have been added in the new scheme like settlement of pension claims within 20 days, payment of 12% interest on delay, inclusion of provisions related to higher pension and digital compliance for employers. However, the formula for calculating pension has remained the same as before. That is, the monthly pension will be determined only on the basis of pensionable salary and pensionable service.
