The government will consider the raising of the current minimum pension of ₹1,000 under the Employees’ Provident Fund Organisation (EPFO) to ₹7,500 in what is a very bold step and will benefit millions of pensioners. According to the proposal, it is intended to provide some respite to pensioners under the Employees’ Pension Scheme (EPS-95) and a more secure retirement.
The Reason Behind The Consideration Of Pension Hike
Result of inflation and increase in the cost of living, pensioners experience what the minimum pension seems to be – ₹1,000 just enough to support the basic needs of someone. To them, the current sum is too little with which to compare any reasonable living standards; for them, an increase to ₹7,500 will give nice relief in terms of their financial status.
Who Will Benefit?
If passed, the said amount of funds to be increased will mostly be directed into EPS-95 pensioners, particularly those belonging to the public and private sectors who paid their contributions to the EPFO while they were in employment. The pension revision is likely to benefit over 60 lakh pensioners.
Government Planning And Considerations
Central governments are working with various stakeholders towards finalising the proposal. Financial aspects with respect to the viability of the proposal and impact on the EPFO funds are also under consideration. Further, the government may also look for the routes towards regulating the increase with regard to sound management of funds from the employer and employee contributions.
Main Highlights Of The Pension Hike Proposed
- Minimum Pension Increase: From Rs. 1,000 to Rs. 7,500 per month.
- Financial Security: Ensures better sustenance for pensioners in terms of health, utility, and living costs.
- Increase in Disposable Income: Avenues for disposable income triggering economic growth.
- Improved Social Welfare: Easing financial burden from the retirees.
What Will Happen?
Though there awaits an official view on the matter, one expects the government to bring this proposal in along with the upcoming budget session. If it passes, development of the new pension might be approved before the end of the year. Pensioners are supposed to duly regard any notice or notifications issued from time to time by EPFO for more information.
Conclusion
The increase in pension from an amount of ₹1,000 to ₹7,500 will indeed prove to be a boon to millions of retirees. It is a sure sign of the government’s commitment to ensuring that senior citizens live with distinction. While all this is going on, pensioners desire a very happy outcome regarding their finances.
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