In India, government employees have always received more benefits than private employees. However, a positive change is coming for private sector employees, especially in terms of their pension benefits.
For a long time, private-sector employees have been demanding an increase in the minimum pension under the Employees’ Provident Fund Organization (EPFO). This is great news for lakhs of pensioners across the country.
Demand for ₹7,500 Minimum Pension
Ahead of Budget 2025, a group of retired EPS-95 employees met Finance Minister Nirmala Sitharaman and requested an increase in the minimum pension to ₹7,500 per month and the inclusion of a Dearness Allowance (DA) in the pension. The Finance Minister assured them that their demands would be seriously considered, hinting that a positive announcement could be made soon.
First Pension Revision in a Decade
The last increase in the minimum pension under EPS was in September 2014, when it was raised to ₹1,000. In the EPF system, both the employee and the employer contribute 12% of the employee’s basic salary to the Provident Fund. Out of this, 8.33% goes to EPS, while the remaining amount is deposited in the EPF account. This is the first pension revision in a decade, which is expected to greatly improve the financial security of pensioners.
BIG NEWS
Modi Govt announces a new pension scheme called the Unified Pension Scheme (UPS).
Under this scheme, if an employee works for at least 25 years,
they will receive 50% of their last 12 months’ basic pay as pension after retirement.
If a pensioner passes away,… pic.twitter.com/O5N6IG53A8
— Times Algebra (@TimesAlgebraIND) August 24, 2024
Pensioners to Get Major Financial Relief
Good news for pensioners! A significant hike in pension is on the way. Union Labour Minister Mansukh Mandaviya has assured that steps will be taken to fulfill pensioners’ demands, including a substantial increase in pension.
Pension Linked to Dearness Allowance (DA)
One of the major changes is that Dearness Allowance (DA) will now be linked to the pension. This move is expected to increase pensioners’ income by up to seven times. Over 78 lakh pensioners currently covered by EPFO will benefit from this revision.
Key Demands of Pensioners’ Organizations
A leading pensioners’ organization has raised several key demands, including:
- Increase in the minimum pension
- Improved financial security for pensioners
- Free medical care for retirees and their spouses
- Fixing loopholes related to higher pension benefits
The government has responded positively to these requests, showing strong support for revising the minimum pension under the Employees’ Pension Scheme (EPS) after 10 years.