A significant update is emerging about the pensions received by employees. A group of pensioners under the Employees’ Provident Fund Organization (EPFO) met with Finance Minister Nirmala Sitharaman on Friday. They urged the government to establish a minimum pension of at least Rs 7,500 per month to support employees’ welfare.
The delegation, led by Commander Ashok Raut, the National President of the EPS 95 National Movement Committee, had a productive discussion with Sitharaman. Following the meeting, Raut expressed that the Finance Minister assured them their requests would be taken into account. He added that this promise from the Finance Minister instills hope, emphasizing the need for the government to announce a minimum pension of Rs 7,500 along with a dearness allowance in the upcoming budget. Anything less would not ensure a dignified life for senior citizens.
Finance Minister Sitharaman is set to present the Union Budget for the financial year 2025-26 in Parliament on February 1, 2025. Pensioners are advocating for a basic pension with dearness allowance to be set at Rs 7,500 per month, along with free healthcare for the spouses of pensioners, among other requests.
At a press conference held prior to the meeting, Raut highlighted the struggles faced by over 7.8 million pensioners from central and state government public sector undertakings (PSUs), private companies, and factories nationwide. He pointed out that these pensioners have been protesting for seven to eight years, seeking an increase in dearness allowance and a rise in the minimum pension from Rs 1,000 to Rs 7,500, along with free medical care for themselves and their spouses.
Raut explained that 12 percent of the basic salary for employees under the Employees Pension Scheme (EPS) is allocated to the Provident Fund, while 8.33 percent of the employer’s 12 percent contribution goes to the EPS. Additionally, the government contributes 1.16 percent to the pension fund.
He further asserted that even though the government set a minimum pension of Rs 1,000 in 2014, over 3.66 million pensioners are still receiving less than this amount.
