New Delhi – In a significant development that could bring relief to lakhs of private-sector employees, the central government is reportedly considering a proposal to increase the minimum pension amount under the Employees’ Pension Scheme (EPS).
If approved, the pension could rise from the current ₹1000 to as much as ₹7500 per month – a long-standing demand of several PF employee unions.
Though there is no official confirmation yet, sources suggest that discussions are underway, and the move could be positioned as a major pro-worker initiative amid rising inflation.
Pension Hike Proposal Gathers Momentum
The Employees’ Provident Fund Organisation (EPFO) currently provides a minimum pension of ₹1000 under the EPS. However, employee associations have repeatedly urged the government to revise this amount, arguing that the current figure is grossly inadequate to meet basic living expenses after retirement.
Media reports now indicate that the government may consider a step-by-step hike. Some sources suggest the pension could be first raised to ₹3000, with a gradual plan to scale it up further. The proposed hike to ₹7500 would be a game-changer for low-income retirees, providing a crucial financial cushion during old age.
A parliamentary committee has also echoed this demand, adding pressure on the government to act swiftly.
Who Is Eligible for EPS Pension?
To be eligible for a pension under EPS, the following conditions must be met:
- The employee must have completed at least 10 years of continuous service.
- The pension becomes payable at 58 years of age.
- The scheme is designed specifically for private sector employees contributing to the EPF (Employees’ Provident Fund).
If the job tenure is less than 10 years, the employee is not entitled to receive a monthly pension under this scheme.
The EPS was introduced to provide social security in old age to PF-contributing workers, and any hike in pension would significantly strengthen that safety net.
Recent EPFO Announcements: 8.25% Interest Approved
In another welcome move, the central government recently approved an 8.25% interest rate on EPF accounts for the financial year – the highest in several years. The EPFO is expected to credit this interest amount into employees’ EPF accounts shortly. Employees are advised to check their passbooks regularly for updates.
What Lies Ahead
While the proposed ₹7500 pension hike remains unconfirmed, the growing political and public pressure may push the government to act soon. If implemented, this would be one of the most substantial enhancements in EPS benefits since its inception.
The final decision, however, will rest with the central government and the EPFO board. Until then, PF employees will be watching closely for official announcements in the coming weeks.