EPFO Pension Increase: In the coming months, the Central Government may increase the minimum pension given to employees working in the private sector under the Employees’ Pension Scheme (EPS) from Rs 1,000 to Rs 3,000.
EPFO Pension Increase: There is good news for the employees and account holders of the Employees Provident Fund Organization. Amidst the discussions of the EPFO ​​3.0 scheme, crores of employees working in the private sector may soon get good news.
There is news that the Central Government is preparing to increase the minimum pension under the Employees’ Pension Scheme (EPS) from Rs 1,000 to Rs 3,000. Last time in 2014, the Central Government had increased the minimum pension for EPFO ​​subscribers from Rs 250 to Rs 1,000 per month.
Pension amount will increase from Rs 1000 to Rs 3000
Actually, private employees covered under EPFO ​​get minimum pension through Employee Pension Scheme (EPS). In September 2014, the central government had fixed the pension of pensioners under EPS 1995 at Rs 1,000 per month. According to the news published in Money Control, the Modi government is preparing to increase the minimum pension amount to Rs 3,000 per month. Currently, about 186 institutions come under EPF-95. There are 80 lakh pensioners who come under this category.
The demand has been rising for a long time
- It is reported that the Labor Ministry had sent a proposal to the Finance Ministry in 2020 to increase the minimum pension under EPS to Rs 2,000 per month, but the Finance Ministry did not approve this proposal.
- After this, before the general budget in the year 2025, the retired employees of EPS met Finance Minister Nirmala Sitharaman and demanded to increase the minimum pension to Rs 7,500 and got assurance on this, but no decision has been taken till now.
- In the month of April, the Parliamentary Committee headed by BJP MP Basavaraj Bommai had also asked the Labor Ministry to increase the minimum pension by Rs 1,000.
What is EPS?
- Employee’s Pension Scheme (EPS) is a retirement scheme operated by the Employees’ Provident Fund Organisation (EPFO).
- It provides regular income to organized sector employees after retirement.
- EPS funds are a part of the employer’s 12% contribution to the Employees’ Provident Fund (EPF).
- Out of this, 8.33% goes to EPS and the remaining 3.67% is deposited in EPF.
At present around 186 institutions are covered under EPF-95. - The total fund of EPS is more than Rs 8 lakh crore.
- There are 78.5 lakh pensioners under the scheme, out of which 36.6 lakh get a minimum pension of Rs 1,000.
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