Employees Pension Scheme: Minimum monthly payments likely to be hiked to Rs 2,000
Days after a Parliamentary panel asked the government to revise the amount of monthly pension, it has been reported that the Centre may soon double minimum payment under the Employees’ Pension Scheme to Rs 2000. The Labour Ministry has asked the EPFO to calculate the cost as well as the number of beneficiaries if the EPS pension is doubled, the Economic Times today reported, citing a government official.
“EPFO will soon finalise the implications of doubling the minimum pension, following which government will move a proposal to the central board of trustees of EPFO,” the ET d the official as saying.
Earlier this week, the panel told the Centre that the current monthly amount under Employees Pension Scheme was too small to fulfil even the basic monthly needs and requirements of a pensioner. The Panel asked the government to assess the scheme and consider revision of Rs 1,000. The Employee Provident Fund Organisation or EPFO had started providing minimum monthly pension of Rs 1,000 under the Employees Pension Scheme 1995 from September 1, 2014.
The panel also suggested that government should take a policy decision to pay such workers whose employers have not contributed towards social security schemes and the Employees State Insurance Corporation (ESIC) from the fixed assets or deposits of crores still lying with the appropriate authorities.
There are around 60 lakh pensioners out of which around 40 lakh are getting less than Rs 1,500 per month and others get a maximum of Rs 2,000-2,500 per month. EPS-95 is one of the social security schemes run by the EPFO.
Last year in December, All India EPS-95 Pensioners Sangharsh Samiti had demanded that all the 60 lakh pensioners under the EPS-95 scheme should be provided a minimum monthly pension of Rs 7,500 and as an interim relief, all of them should be given Rs 5,000 per month.