Good news for lakhs of EPFO members. According to media reports, there’s a possibility that the minimum monthly pension for EPFO subscribers might rise from Rs 1,000 to Rs 7,500. Recently, a group of pensioners met with Finance Minister Nirmala Sitharaman to advocate for an increase in the minimum pension.
The Finance Minister has promised to take their request into consideration. The budget for 2025-26 is set to be presented on February 1. In preparation for this, the EPS-95 National Agitation Committee had a meeting with Sitharaman on January 10.
Previously, trade unions also discussed this matter with the Finance Minister, urging her to raise the minimum pension under the EPFO fivefold, establish the Eighth Pay Commission, and impose higher taxes on the wealthiest individuals.
However, the EPS-95 National Agitation Committee criticized the proposed Rs 5,000 pension as insufficient, stating it fails to cover even basic living expenses. They pointed out that while the government set the minimum monthly pension at Rs 1,000 in 2024, many pensioners are still receiving less than that amount.
What about the contribution deductions?
For those working in the private sector, a 12% deduction from their basic salary is made for the EPF account. The employer matches this contribution, with 8.33% going to the EPS (Employees’ Pension Scheme) and the remaining 3.67% directed to the EPF.
