EPFO pension news for private employees: The parliamentary standing committee for labour, which is headed by BJP MP Basavaraj Bommai, has recommended raising the minimum pension amount under the pension scheme of the Employees’ Provident Fund Organization (EPFO) for its pension scheme by Rs 1,000. The minimum pension has remained unchanged since 2014, with the Central Government fixing it at Rs 1,000 per month.
Demand For An Increase In Minimum Pension
However, trade unions and pensioners’ organizations have long been insisting that the minimum pension should be raised to not less than Rs 7,500 per month. Earlier this month, in September 2014, the Centre notified that the minimum pension would be infringed at Rs 1,000 for the Employees’ Pension Scheme (EPS), which is administered by EPFO. Under EPF, the employees deposit 12 percent of their basic salary in the Provident Fund, while similar contributions are made by the employers. Of this contribution made by the employer, 8.33 percent goes to EPS, and 3.67 percent is deposited in the EPF account.
What Is Mentioned In Report
The committee reiterated its earlier recommendations. It added that the issue of raising EPS, 1995’s minimum pension of Rs 1,000 a month requires serious consideration, as the cost of living has manifold increased in 2024 as against 2014, along with other reasonable grounds given by various stakeholders before the committee in the year of oral evidence held in 2023.
The committee also added that given the financial implications, the Ministry/EPFO ought to expedite the work in the larger interest of all affected pensioners and their family members.
Time Limit For New Scheme
The committee noted that the scheme is being evaluated by a third party after 30 years of its launch and recommended that this work should be completed in a fixed time frame up to December 2025 to assess the effectiveness of the scheme, sustainability of the scheme, and scope for further improvement, etc.
Also Read: 7th Pay Commission Update: Rs 13,464 Salary Boost For Employees This Navratri