GOOD news for EPS-95 members: Minimum pension raised from Rs1,000 to ...

There is some good news for all employees who have contributed to the Employees' Pension Scheme-95. It was a pension scheme under which all employees, working in private companies as well as those in government jobs, contributed to the provident fund. The employees covered under the EPS-95 will get a minimum monthly pension of Rs 7,500 instead of Rs 1,000. Replying to a question of MP Balya Mama Suresh Gopinath Mhatre, the Union government clarified its position on increasing the minimum pension and granting Dearness Allowance (DA) to pensioners under the Employees’ Pension Scheme, 1995 (EPS-95).

EPS-95 pension

In an unstarred question, Mhatre asked the government to clarify if it was considering raising the minimum pension from Rs 1,000 to Rs 7,500. Trade unions representing lakhs of pensioners across the country raised this demand long back. Introduced in 1995, EPS-95 is India’s largest pension scheme for private-sector and organised-sector workers. Originally designed as a defined contribution–defined benefit social security system, it covers more than 80 lakh employees. 

Provident Fund Scheme

Under this scheme, employers contributed 8.33% of the basic wages, while the employees put in the same amount. Besides, the Union government contributed 1.16%, with the upper ceiling of the wage of Rs 15,000.  The scheme was introduced to ensure old-age security. Pensioners have long argued that the Rs 1,000 minimum monthly pension has not kept pace with rising prices, cost of living, or inflation. The trade unions demanded an increase in the minimum pension to Rs 7,500. Other demands include regular Dearness Allowance (DA), restoration of higher pension benefits, and a revision of the scheme to make pensions livable.