Owing to a landmark decision, thousands of pensioners across the country have started to receive a higher pension amount under the Employees’ Pension Scheme (EPS-95), so there is a huge relief for this group of pensioners. Since over 10 years, this group of EPS-95 pensioners were going unheeded asking for an increase in the monthly pension to a just level.
What Is EPS-95?
EPS-95 was set up in the year 1995. Administered by Employees’ Provident Fund Organization (EPFO), this scheme offers monthly pension to pensioners who are salaried workers of the organized sector after retirement or superannuation, on disability, or, in case of death, to their dependents. Thus a very long list of pensioners who had sold their labor to the scheme for a number of years are now having pensions of just in the range of Rs. 1,000 or 2,000, which, when set against their cost of living, is nothing but a pittance.
What Changes Will Be Carried Out By The Year 2025?
1. Regarding the Increase in Pensions
Similarly, as regards Increase in Pensions, the Central Government, being proprietor of the Act, has since assured that the EPFO provide Beneficiaries of EPS-95 the relief of a minimum pension of Rs. 7,500 per month. This grants dignity to the march towards social justice as well as adequate retirement security to the common man.
2. DA Inclusion
Another critical change refers to the disbursal of the Dearness Allowance along with the basic pension; in other words, the pension is given by matching the inflation and thus doubling the monthly payout.
3. New Calculation Procedure
The pension in the revised scheme gets computed according to the actual salary drawn at the rate of retirement, thus stepping away from the earlier capped basis of salary. This new provision, therefore, works favorably to the promo and pension amount of those who have served for a long period.
4. Family Pension
New changes uplift the structure of family pension, thereby stabilizing the financial position of a dependant spouse or dependent of a deceased pensioner.
Who All Can Benefit?
The amended pension scheme shall provide benefits to:
- Retired EPS-95 members from the public and private sector
- Widows/family of EPS-95 pensioners who have expired
- The pensioners who opted for higher pension contribution and fulfilled required criteria
Conclusion
The 2025 raise in the EPS-95 pension benefits offer is a manifestation of the Government’s resolve to ensure dignity and financial security of the aged in India. By raising the minimum pension, addition of DA, and simplification of calculation, this move surely wipes the long-standing issues off, reinforcing the social safety net for lakhs of retired workers and their families.
Also Read:New EPS Pension Update: RS 8,500/Month For Eligible Private Employees