Employees’ Pension Scheme (EPS-95) pensioners are expected to receive a windfall shortly as the government is reportedly mulling raising the minimum monthly pension to ₹7,500. This very much awaited move is expected to bring financial security to millions of retired employees under EPS-95.
Current Pension Scenario
Under EPS-95, pensioners are receiving a mere ₹1,000 a month for years, and there hasn’t been any increase in the pension amounts. Trade unions and pensioners have raised the demand of increasing the pension sufficient for retired employees to withstand various inflationary trends and increasing costs of living over the years.
Government’s Proposal
The word is that the Government is actively considering increasing the minimum pension to ₹7,500 per month. It is believed that the proposed increase would greatly help a number of pensioners who would have been living on a very meager income since their retirement. The circumstances are very much characterized by strong pressures being exerted by various labor organizations and pensioners’ bodies demanding for such resolution granting reasonable amounts as pension for dignified living after retirement.
Financial Concerns
If such drastic measures could be implemented, the financial implications concerning an increased burden of outgo from the EPFO and inflow into the funds maintained by the government for this increase in pensions will be tremendous. The authorities are looking into the financial feasibility and economic viability of this proposal so that there is long-term stability for the pension funds. It seems that we should also be seriously considering an increase in pension contributions or perhaps some government subsidizing to effect this change without overburdening the EPFO corpus.
Beneficiaries In Sight
This much-awaited increase in pension will primarily benefit the retired employees who had paid into the EPFO in respect of their working in different sectors, both private and public. After all these years, because of having worked for many years, most of the pensioners will now see a turnaround of sorts struggling all these years with a small pension.
Views From The Stakeholders
Pensioners’ associations have hailed this, pressing the government for solutions to the issues. One generation of pensioners sees ₹7,500 as a basic token of recognition; others think it could hardly measure up in light of the soaring market prices owing to inflation. The union fronts are also demanding an adjustment to increase the pension and a better social security setup for retired workers.
Conclusion
The least that remains to be done is the final approval and to execute the action into operation in time. The increase in the minimum pension to ₹7,500 is surely a rational move toward better financial prospects for EPFO pensioners. The millions of pensioners still look toward the government for a quick intervention regarding the post-retirement enhancement of their pensions.
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