Minimal EPS pension hike to ₹7,500 could also be thought of in Union finances 2025: Report

The federal government might reportedly be contemplating appearing on the attraction by personal sector workers coated beneath the Staff’ Provident Fund Organisation (EPFO) for a rise within the minimal pension, which in the meanwhile is mounted at ₹1,000 monthly.

Beneath the Provident Funds and Miscellaneous Provisions Act, an employer and employee each are required to contribute 12% of an individual’s fundamental wage in direction of a retirement-benefits corpus managed by the EPFO (HT Picture)

For this, a delegation of EPS-95 pensioners met Finance Minister Nirmala Sitharaman on January 10 , 2025, as a part of a pre-budget consultative assembly, in keeping with a Monetary Specific report.

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Their request was for a minimal month-to-month pension of ₹7,500, together with a dearness allowance (DA) hike and free medical therapy for each pensioners and their spouses.

Sitharaman assured the EPS-95 Nationwide Agitation Committee that the calls for could be reviewed, in keeping with the report.

Commerce unions additionally met the finance minister throughout the session, however they advocated for a decrease pension improve to ₹5,000 monthly, the report learn.

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This attracted criticism from the EPS-95 Nationwide Agitation Committee which deemed the quantity as insufficient, unfair, and never ample to fulfill the fundamental wants of pensioners.

The report quoted the pension physique as claiming that regardless of the federal government’s 2014 announcement of setting the minimal month-to-month pension at ₹1,000, over 36.60 lakh pensioners nonetheless obtain lower than this quantity.

EPF members contribute 12% of their fundamental pay in direction of the provident fund, whereas employers additionally match this contribution.

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The employer’s contribution in itself is split into two elements whereby 8.33% is allotted to the Staff’ Pension Scheme (EPS), whereas 3.67% goes in direction of the EPF scheme.

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