In a significant development for pensioners under the Employees’ Pension Scheme (EPS), the government is considering a substantial increase in the minimum monthly pension.
Currently, the minimum pension stands at ₹1,000 per month, a figure that has been deemed insufficient given the rising cost of living. The proposed hike aims to provide better financial security for retirees, particularly those from the private sector.
Proposed Pension Increase
The government is contemplating raising the minimum EPS pension to ₹7,500 per month. This proposal follows persistent demands from pensioners who argue that the current amount does not meet their basic living expenses.
A delegation representing EPS-95 pensioners met with Finance Minister Nirmala Sitharaman during a pre-budget consultation, urging for this increase along with additional benefits such as a dearness allowance (DA) hike and free medical care for pensioners and their spouses.
Background and Rationale
The EPS was introduced in 1995 to provide social security benefits to employees in the organized sector. Under the scheme, both employees and employers contribute a portion of the salary to the pension fund. Despite the government’s 2014 announcement to set the minimum pension at ₹1,000, over 36.60 lakh pensioners still receive less than this amount, highlighting discrepancies in the system.
Stakeholder Perspectives
While the EPS-95 National Agitation Committee has strongly advocated for a ₹7,500 pension, trade unions have suggested a more modest increase to ₹5,000 per month. This divergence has sparked criticism from pensioners, who argue that the proposed ₹5,000 is insufficient to meet rising living costs.
Implementation and Impact
If approved, the pension hike would significantly improve the financial security of retirees, ensuring they can comfortably handle daily expenses in their retirement years. The increase would also reduce dependence on family members and government aid, contributing to a more dignified life for pensioners.
Conclusion
The proposed increase in the EPS minimum pension reflects the government’s recognition of the challenges faced by retirees in the current economic climate. While discussions continue, the outcome of these deliberations will have a profound impact on the lives of millions of pensioners across the country.