The government is allegedly considering raising the minimum monthly pension under the Employees' Pension Scheme (EPS) to Rs 7,500, a decision that might have a big effect on workers in the private sector. The EPS-95 seniors, who currently receive a pitiful Rs 1,000 per month, have been pleading for this plan for a long time.
A delegation of retirees met with Finance Minister Nirmala Sitharaman on January 10, 2025, during a pre-budget consultation. They requested an increase in addition to other incentives, including as a rise in the dearness allowance (DA) and free medical care for retirees and their partners.
Stakeholder Voices were Divided
Trade unions proposed a smaller increase to Rs 5,000 per month, while pensioners' associations, led by the EPS-95 National Agitation Committee, have firmly pushed for a pension of Rs 7,500.
Pensioners have criticized this discrepancy, claiming that the suggested Rs 5,000 is not enough to cover growing living expenses.
The committee also highlighted the disparities in the current system, pointing out that over 36.60 lakh seniors still receive less than the 2014 government-adopted minimum income of Rs 1,000.
Understanding EPF Detriments
Employers and employees each contribute 12% of their base pay to a retirement benefits corpus under the Employees' Provident Fund Organization (EPFO).
The EPS receives 8.33% of the employer's contribution, with the Employees' Provident Fund (EPF) receiving the remaining 3.67%. Pensioners contend that in order to provide sufficient post-retirement benefits, the current allocation system needs to be thoroughly reviewed.
Millions of retirees are feeling hopeful again after Finance Minister Sitharaman promised to evaluate their demands. The older workers in India may experience a new chapter in terms of financial dignity if the proposed increase to Rs 7,500 is enacted. This long-awaited reform may be hinted at in the next Union Budget 2025.
