EPFO Pension Plan: Rising to Nearly Three Times the Current Amount
EPFO Pension scheme is on track for increasing to nearly three times its current amount. A parliamentary review panel recommends raising the minimal pension from Rs 1,000 per month to Rs 7,500 due to financial hardships faced by many pensions.
Highlights
- •Parliamentary Committee Recommends Rs 7,500 Minimum Pension for EPFO Pensioners
- •Pensioners Are Pushing For A Major Increase Amid Stagnant Pensions
- •EPFO Pension Scheme Faces Lack of Change Despite Rising Inflation and Financial Shortages
- •Committee Endorses Increased Funding and Establishment of Dialogue Board
Major news for EPFO pensioners as a parliamentary committee has recommended an urgent and thorough review of the minimum monthly pension currently set at Rs 1,000 under the Employees' Pension Scheme, 1995. The committee emphasized the need to significantly increase this amount.
Pensioners have been advocating for a rise to Rs 7,500 per month due to financial hardships. This demand comes amidst pensioners staged a three-day protest at Jantar Mantar starting March 9, calling for the minimum pension to be raised to Rs 7,500.
Despite the recommendation, pensioners have faced no change in their basic monthly allowance for several years despite growing inflation. The Parliamentary Standing Committee on Labour, Textiles and Skill Development highlighted that the existing pension level has remained stagnant at Rs 1,000 per month. Pension Review Panel pointed out numerous requests from elderly and economically disadvantaged pensioners who seek an increase due to financial insecurities.
While acknowledging government funding already in place for the scheme, including contributions from currently employed EPFO members, the review committee believes that minimum Rs 1,000 is insufficient. They proposed an immediate comprehensive assessment of EPS-95 pension levels and supported potential enhancements to budgetary support. This would ensure pensions align with actual living costs and provide better social security.
Though endorsing the implementation of Labour Codes and recommending the establishment of a permanent Coordination and Dialogue Board, this committee stressed ongoing need for fair adjustments in minimum EPS pension.
