Such talk within the Employees’ Provident Fund Organization would be quite an important initiative that promises to increase financial security for the employees in the private sector. It is to raise the existing minimum pension entitlement under the Employees’ Pension Scheme (EPS-95) to ₹9,000 per month, which has been creating demand. On enforcement, this would be one of the greatest gifts to lakhs of pensioners who see this EPF pension as their very means of livelihood.
Pension Now Versus Pension Then
At the moment, a basic EPS-95 monthly pension would amount to ₹1000 rupees. However, with the inflation rates in this country, this is practically nothing. There were reminders and calls and functions organized by pensioners and unions throughout these years to push for any significant change.
Demand For ₹9,000 Minimum Pension
This demand for a Rs 9,000 minimum pension seems to be picking up momentum rapidly. Many trade unions and pensioners’ associations are rallying behind this demand for a hike. They would argue that higher pensions would go towards engendering financial security for retired employees, especially from the private sector, who would otherwise not have any retirement benefits.
Position Of The Government Regarding The Matter
The government is believed to be considering the proposal and is expected to announce it soon. This is part of what can be termed a series of government efforts “to ensure social security” for both citizens and private sector employees. When approved, the new provision will most likely include all EPS-95 beneficiaries.
Beneficiaries?
- Private Sector Employees: All the employees under EPFO would benefit from the improved pension scheme.
- EPS-95 Pensioners: This will immediately revise the amount of monthly pension payable to current EPS-95 pensioners.
- Poor Retired Workers: An improvement in the quality of life for the poorest retired employees would be as a result of the smaller amounts paid as pension.
Implementation Beyond Fundainism
Thus, while this draft promise sounds quite perfect, it will have to be economically viable during implementation. The government will then look into more funding from employers and employees and budget allocation for the scheme. More discussions will be expected among EPFO, Ministry of Labour and other stakeholders.
Conclusion
A better minimum pension of ₹9000 per month can definitely change lives for millions of pensioners, and as this proposal is at the center of a vibrant debate within the bowels of government, private-sector employees and pensioners will eagerly await the latest news.
Keep updated on exciting things on EPFO pensions and finance news.
Also Read; EPFO Rule Change: Easy Online PF Account Transfer, Check Benefits And Steps