Will EPS Minimum Pension Increase To Rs. 7,500? What The Centre Stated

Current Situation of the EPS Minimum Pension

  • The income generated through EPS has gone up, but for a large number of pensioners, the increase in minimum pension is not a reality yet. Thousands of members under EPS-95 are seeking that the minimum pension be increased from Rs. 1,000 to Rs. 7,500. A Member of Parliament recently raised this demand again.
  • The Minister of State for Labour, Ms Shobha Karandlaje, said there is no such proposal to increase the minimum pension by the Government of India. Ms Karandlaje gave the reason for such a decision.

Government Explanation

  • The minister added that the EPS fund comprises 8.33% wage contribution by the employer, besides assistance from the central government, and pays benefits out of the income earned through such contributions.
  • A yearly assessment checks on the status of the fund. According to the latest assessment, the EPS fund is running a deficit. The government is already providing extra money necessary to sustain the current minimum pension owing to low returns.
  • For this reason, there is no chance of increasing the EPS minimum pension in the present scenario.

What is the EPS Scheme?

  • It works under the Employees' Provident Fund Organisation, and it is applicable for all EPF members. Along with this scheme, it provides a monthly pension similar to government employees. In case of the employee's death, the nominee will get the pension.
  • Every month, 12% of the employee's salary is deposited in EPF by the employee and the employer. The employer's contribution of 12% is split between the EPS and EPF. 8.33% goes to EPS and 3.67% goes to EPF. Thus, the employer directly contributes to EPS.

Pension Benefits

  • The minimum pension is Rs. 1,000 per month.
  • The maximum pension is Rs. 7,500 a month.
  • Pension at the age of 58 or upon retirement.
  • Early retirement begins at age 50.

The spouse will receive the pension after the employee's death. Children get pension up to age 25. If the remaining spouse is remarried, then only the children (up to age 25) would continue to draw this pension. This pension is paid to disabled children during their lifetime. For claiming pension, the member has to get the pension certificate from EPFO.