This topic draws from evolving changes that will affect millions of Employees’ Provident Fund Organisation (EPFO) members who can hope for a big increase in the minimum amount of monthly pension payable to them under the Employees’ Pension Scheme (EPS). From all quarters comes news pointing in the direction of a possible enhancement of pensions to ₹7,500 a month, which is just what many retired employees, drawing something like ₹1,000 just for sustenance, have been crying for.
EPS Pension Hike Background
The Employees’ Pension Scheme (EPS-95) was intended as a means of providing financial security to an employee after retirement. Whereas, for all these years, the minimum pension payable has been fixed at ₹1,000 a month, which is an almost trivial amount when considered against rising living conditions and especially affecting such elderly pensioners. Pensioners’ associations have been on record begging the Government since for an upward revision-that is to say, a level of at least ₹7,500 plus DA linkage.
Government And Court Interventions
Much momentum is gathering lately for pension reforms. The Supreme Court even acknowledged the importance of giving due treat to pensioners in the EPS-95 matters, directing the Government to look into more viable solutions. Following this, the Ministry of Labour and EPFO held rounds of discussion with the stakeholders.
The Central Board of Trustees (CBT) of the EPFO is now said to be in the advanced state of getting the proposal raised for making the minimum monthly pension ₹7,500. If approved, this revised benefit will cover almost 75-80 lakh EPS beneficiaries across India.
Who Will Benefit?
All such eligible EPS-95 pensioners, particularly those working in the private sector who retired on lower pay scales, will be entitled to receive the revised pension. Also, the employees who are near to retirement will see a higher pension accrual due to enhanced calculations under the new formula.
When Would It Be Implemented?
For the time being, no official date has allowed the leak to be fixed, and according to the insiders, the implementation could be in the second half of 2025. Once the government duly ratifies it, the very implementation shall follow suit, together with arrears that shall be paid unto existing pensioners at the very behest.
Conclusion
This is a great welfare step towards social security and dignity for retired private-sector employees. The enhancement of the pension to ₹7,500, if implemented, will be one of the biggest reforms in the employee benefit system in India in recent times. Pensioners and workers are anxiously awaiting the announcement of the final version.
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