Millions of pensioners depend on the Employees' Pension Scheme (EPS) for their monthly income. For many of them, a higher minimum pension has been a long-standing demand. The issue could come up at the next meeting of the Employees' Provident Fund Organisation (EPFO).
The organisation's Central Board of Trustees (CBT) is scheduled to hold its 240th meeting on November 19 in Gir, Gujarat, with a possible revision of the pension amount likely to be among the topics considered. According to a Business Standard report, two people familiar with the matter said the pension hike proposal may be discussed. However, the meeting's agenda has not yet been finalised.
The Employees' Pension Scheme (EPS), commonly referred to as the EPF pension, was introduced in 1995 to provide retirement benefits to employees in the organised sector. Employees covered under the Employees' Provident Fund (EPF) scheme are also eligible for EPS. Managed by the Employees' Provident Fund Organisation (EPFO), the social security scheme provides a monthly pension to eligible employees after they retire.
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Why Are Pensioners Seeking A Minimum Pension Hike?
The government has provided a minimum monthly pension of Rs 1,000 under the EPS since September 2014. Trade unions and pensioner associations have repeatedly called for an increase, arguing that the amount is no longer sufficient to meet living expenses amid rising costs.
Some unions have demanded a minimum pension of Rs 7,500 a month, along with dearness allowance (DA). Whether the proposal will be taken up at the November meeting remains unclear, as the agenda is yet to be finalised.
What Has The Government Said About A Pension Revision?
The Centre provides budgetary support to maintain the minimum pension of Rs 1,000 a month, in addition to its contribution to the EPS. The financial position of the pension fund remains an important factor in considering any increase.
In February, Union Labour Minister Mansukh Mandaviya said the government would soon take a decision on raising the wage ceilings under the EPFO and the Employees' State Insurance Corporation (ESIC), as well as increasing the minimum pension under the EPS.
The upcoming CBT meeting follows the Centre's decision to raise the wage ceiling for mandatory EPFO coverage from Rs 15,000 to Rs 25,000 per month.
When And Where Will The EPFO Board Meet?
The CBT's 240th meeting is scheduled for November 19 in Gir, Gujarat. The Ministry of Labour and Employment informed CBT members about the meeting's date and venue in a letter sent last week. The meeting will be held outside New Delhi, unlike the board's five most recent meetings, which took place in the capital.
The CBT has held meetings outside Delhi in the past, including one in Guwahati in March 2022. For now, the minimum monthly EPS pension remains Rs 1,000 and any raise will depend on the government's decision.
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