EPS-95 minimum pension will be ₹7500 or not? The government clarified the situation in the Parliament, know what the answer was

The eyes of more than 78 lakh pensioners and about 6 crore contributors to the Employees’ Pension Scheme (EPS-95) under the Employees’ Provident Fund Organization (EPFO) were fixed on whether the government would increase the minimum monthly pension. Increase from ₹1,000 to ₹7,500 Going to do. Sharp questions were asked on this issue during the Parliament session amid continuously rising inflation and nationwide movements of Pensioners Unions (NAC). The Union Labor and Employment Ministry has completely clarified the government’s stand on the increase in minimum pension, addition of dearness allowance (DA) and the budgetary position of the fund by giving a written reply in the Parliament. Let us understand from the perspective of a business and policy reporter what the government has said on this.

Government’s reply in Parliament: Will the minimum pension be ₹7,500?

Responding to a question asked in Parliament, the Labor Ministry clarified that at present there is a direct proposal to increase the minimum pension to ₹ 7,500 under the EPS-95 scheme. No final proposal or approval accepted Is.

The government (government) clarified that in 2014, the central government, through its budgetary support, had fixed the minimum pension under EPS-95 at ₹1,000 per month, for which the government provides separate budgetary support every year. Considering the additional financial burden and actuarial losses in the pension fund, increasing the pension to ₹7,500 without additional budgetary allocation and paying dearness allowance (DA) on top of that could be challenging for the survival of the pension fund.

Demand of pensioners unions and government’s argument

National Struggle Committee (NAC) and various employee unions have been placing 4 main demands before the government for a long time:

1. Minimum Pension: The minimum pension should be increased from ₹1,000 to ₹7,500 per month.

2. Dearness Allowance (DA): DA should be implemented by linking the pension amount to the inflation index.

3. Medical Facility: Pensioners and their spouses should get the benefit of free medical facilities (like Ayushman Bharat).

4. Higher Pension: As per the order of the Supreme Court, there should be prompt settlement of claims for higher pension on actual salary.

The government in its reply has said that the pension fund is a ‘pooled fund’, which is run by 8.33% contribution from members and employers. It is imperative to evaluate the financial stability and long-term impact of the fund before making any changes.

What will be the impact on pensioners and what is the way forward?

This written reply of the government has dealt a blow to the hopes of lakhs of pensioners who were waiting for the announcement of ₹7,500 pension and DA in this session. However, there are frequent discussions on review of the pension structure in the meetings of the Labor Ministry and the Central Board of Trustees (CBT) of EPFO. At present, pensioners’ organizations are planning a strategy to submit a memorandum regarding their demands and explore legal avenues.