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Crores of EPFO members may soon get good news. According to media reports, a parliamentary committee has demanded that the minimum pension for private sector employees be increased from Rs 1,000 to Rs 7,500. In the year 2014, the Central Government had increased the minimum pension given to EPFO shareholders from Rs 250 to Rs 1000 per month.
There has been no change in the last 11 years.
Trade unions and pensioner organizations have been demanding for a long time to increase the minimum pension to at least Rs 7,500 per month. In this regard, he says that inflation has increased a lot, so pension should also be increased. There has been no change in the last 11 years.
What is EPFO?
EPFO means “Employees Provident Fund Organization”. It is a statutory body established by the Government of India to help saving employees for retirement. It is one of the largest social security institutions in India, whose main objective is to provide financial security to employees after retirement.
Inflation has increased manifold compared to 2014
According to media reports, the Standing Committee of Parliament on Labor has urged the Central Government to increase the minimum pension given under EPFO’s Employees Pension Scheme (EPS). Currently this pension is 1 thousand rupees per month. In this regard, the committee said that inflation has increased manifold in 2025 compared to 2014 and there is a need to increase pension accordingly. The committee further said that keeping in mind the financial impact, the government needs to consider it keeping in mind the pensioners and their family members.
How much amount is deducted from pension?
The committee said that the scheme is being evaluated by third party 30 years after its commencement. The committee said that it should be completed within the stipulated time limit before the end of 2025. For private jobs, 12 % of their basic salary is deducted for EPF account. Along with this, the company also deposits the same amount in the PF account of the employee and 8.33 percent of the amount deposited by the employer goes to EPS, while the remaining 3.67 percent goes to EPF.