The Parliamentary Standing Committee on Labour, led by BJP leader Basavaraj Bommai, has recommended that the Centre increase the minimum pension of ₹1,000 paid by the Employees Provident Fund Organisation (EPFO) under its Employees Pension Scheme (EPS). The panel noted that over a decade has passed since the minimum pension of ₹1,000 per month was implemented. The committee believes that considering the significant increase in the cost of living in 2024 compared to 2014 and other relevant factors, as put forward by various stakeholders in 2023, there is a need for an upward revision of this amount. “Notwithstanding the financial implications involved, the Committee desire the Ministry/EPFO to take up this significant task sympathetically with a sense of urgency in the larger interest of the effected pensioners and their family members so as to arrive at an amicable solution,” the report added. The Union government contributes 1.16% of wages under the EPS, with wage celling of ₹15,000 per month. A grant-in-aid is provided to reimburse the difference between the minimum pension of ₹1,000 and the actual member pension. During 2023-24, the total number of pensioners receiving a minimum pension was 20,64,805, with a total grant-in-aid of ₹957.55 crore.
Govt To Revise Pension For EPS Pensioners: Centre's Statement On Revised Pension Plans
Parliamentarians have raised concerns about the Labour Ministry's EPS 95 pension policies, revisions, state-wise beneficiaries, and additional benefits like health services amid increasing pension demand.
Recently Raised Concerns
The Union Labour Ministry has clarified minimum pension eligibility for members and the conditions for pensioners under the Employees' Pension Scheme (EPS) 95. Minister of State for Labour and Employment, Shobha Karandlaje, clarified the eligibility criteria for EPS 95 pensions in the Lok Sabha. Members of Parliament, Daroga Prasad Saroj and Sanjay Haribhau Jadhav, raised questions about the policy and criteria for awarding pensions under the scheme, whether decisions have been made to revise these provisions, and whether the government has conducted any investigations or reviews of EPS 95 pensioner cases. MPs have raised concerns about the timeline for issuing revised pensions to EPS 95 pensioners, the expected beneficiaries across all states, particularly Maharashtra and Uttar Pradesh, and the additional benefits, particularly health services, that may be extended to beneficiaries under the revised EPS 95 scheme.
Eligibility Criteria
To qualify for retirement benefits under the Employees' Pension Scheme (EPS) 1995, a member must complete 10 years of eligible service and reach 58 years of age. Early pension options can be availed after turning 50, subject to a 4% reduction per year for every year short of 58. However, in cases of disablement or death, no age or service criteria apply, and members or nominees are entitled to pensions with just one month of contributions. The government has ensured a minimum pension of Rs 1,000 per month for members, disabled individuals, widows, or nominees since September 1, 2014, alongside Rs 750 for orphans and Rs 250 for children.
Beneficiaries
The government is reviewing and strengthening the EPS 95 scheme, which provides comprehensive social security benefits for old-age contingencies. The minister confirmed that investigations and reviews of EPS 95 cases are conducted as required, with details and outcomes varying by state. No specific data on a revised pension issuance date or the number of beneficiaries were disclosed, including queries about states like Maharashtra and Uttar Pradesh. The minister emphasized the inclusion of health services in the revised EPS 95 scheme, but provided no detailed information about their implementation or scope.