EPS Pension Hike: Good news for employees and account holders! Minimum pension may increase three times, will get huge benefit, know details
In the coming months, the Central Government may increase the minimum pension given to employees working in the private sector under the Employees’ Pension Scheme (EPS) from Rs 1,000 to Rs 3,000.
EPFO Pension Hike: There is good news for the employees-account holders of the Employees Provident Fund Organization. Amidst the discussions of the EPFO 3.0 scheme, crores of employees working in the private sector may get good news soon.
It is reported that the central government is preparing to increase the minimum pension under the Employees’ Pension Scheme (EPS) from Rs 1000 to Rs 3,000. Last time in the year 2014, the central government had increased the minimum pension given to EPFO subscribers from Rs 250 to Rs 1,000 per month.
Pension amount will increase from 1000 to 3000
Actually, private employees covered under EPFO get minimum pension through Employee Pension Scheme (EPS). In September 2014, the central government had fixed the pension of pensioners covered under EPS 1995 at Rs 1,000 per month. According to the news published in Money Control, the Modi government is preparing to increase the minimum pension amount to Rs 3,000 per month. Currently, about 186 institutions come under EPF-95. There are 80 lakh pensioners who come under this category.
The demand has been raised for a long time
It is reported that in 2020, the Ministry of Labor had sent a proposal to the Finance Ministry to increase the minimum pension under EPS to Rs 2,000 per month, but the Finance Ministry did not approve the proposal.
After this, before the general budget in the year 2025, the retired employees of EPS met Finance Minister Nirmala Sitharaman and demanded to increase the minimum pension to Rs 7,500 and got assurance on this but no decision has been taken till now.
In the month of April, the Parliamentary Committee headed by BJP MP Basavaraj Bommai also asked the Labor Ministry to increase the minimum pension from Rs 1,000.
What is EPS?
The Employee Pension Scheme (EPS) is a retirement scheme operated by the Employees Provident Fund Organization (EPFO).
It provides regular income to the employees of the organized sector after retirement.
The EPS fund is a part of the employer’s 12% contribution to the Employees’ Provident Fund (EPF).
Of this, 8.33% goes to EPS and the remaining 3.67% is deposited in EPF.
Currently, around 186 institutions come under EPF-95.
The total corpus of EPS is more than Rs 8 lakh crore.
There are 78.5 lakh pensioners under the scheme, of which 36.6 lakh get a minimum pension of Rs 1,000.
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