EPFO Update: Private sector employees covered under the EPFO have long been demanding an increase in their minimum pension, which is currently fixed at Rs 1,000 per month. Adding to their 7–8-year struggle to present their case to the government, a delegation of EPS-95 pensioners met Finance Minister Nirmala Sitharaman on January 10 to push for their long-pending demand of a minimum monthly pension of Rs 7,500, along with dearness allowance (DA).
Under the EPS-95 (Employees’ Pension Scheme 1995) run by the retirement fund body EPFO, the Centre fixed the minimum pension at Rs 1,000 in 2014. Since then, pensioners have been agitating for an increase in the minimum pension. They are also demanding dearness allowance (DA) and free medical treatment for both the pensioners and their spouses.
As per a statement issued by the EPS-95 National Agitation Committee, the FM assured the delegation that their demands would be reviewed and addressed with a sympathetic approach.
Sitharaman assured that the demands of pensioners would be looked into. While this assurance brings hope, the government must act decisively by announcing a minimum pension of Rs 7,500 with DA in the upcoming budget, the EPS-95 National Agitation Committee statement said.
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During the customary pre-budget consultative meeting with the Finance Minister, trade unions also met Nirmala Sitharaman. However, the unions advocated for increasing the minimum EPFO pension fivefold to Rs 5,000 per month, which is lower than the Rs 7,500 demanded by the EPS-95 National Agitation Committee.
EPS-95 panel slams unions’ demand, calls for fairer pension hike
Taking note of the unions’ demand, the EPS-95 National Agitation Committee criticised labor organisations for advocating a lower minimum pension of Rs 5,000, deeming it inadequate and unfair to meet the basic needs of pensioners.
Despite the government’s 2014 announcement setting the minimum monthly pension at Rs 1,000, over 36.60 lakh pensioners still receive less than this amount, the body claimed.
EPF members push for Rs 7,500 minimum pension under EPS-1995
EPF members contribute 12% of their basic pay towards the provident fund regulated by the EPFO, with employers matching this contribution. The employer’s contribution is divided into two parts: 8.33% is allocated to the Employees’
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