EPFO Pension to See Minimum Increase to Rs 9,000: Government Announces
The government is facing increasing pressure from labor unions for a minimum increase in EPFO pension amount to Rs 9,000 amid the current inflationary environment. The demand has arisen amidst concerns over financially practical and sustainable solutions.
Highlights
- •Labor Unions Demand Minimum Increase of Rs 9,000 in EPFO Pension
- •Current Monthly Pension at Rs 1,000 Exceedingly Low Due to Inflation
- •EPS-95 Linked Salary Contributions Need Revise for Significant Boost
- •Supreme Court’s Order on Reviewing Wage Ceiling Can Aid Future Increases
The labor unions have once again demanded that EPFO pension minimum amount be increased from Rs 1,000 to Rs 9,000.
Currently, the current monthly pension is as low as Rs 1,000 due to inflationary market trends. This has led public representatives and unions including the Bharatiya Mazdoor Sangh (BMS) to demand such an increase from the government. The government has not provided any time frame for this yet.
The pension amount under EPS-95 is significantly linked to salary contributions, with companies and the central government contributing 8.33% and 1.16%, respectively. However, the EPFO ensures a minimum of Rs 1,000 per month by providing budgetary assistance.
With over 47 lakh active pensioners receiving a monthly pension below Rs 9,000, increasing this amount from Rs 1,000 to Rs 9,000 is not only ambitious but also financially unsustainable. Any increase would require a nine-fold rise in the existing pension structure.
Meanwhile, the Supreme Court ordered reviewing the current wage ceiling of Rs 15,000 within four months and suggested enhancing this limit if necessary to ease possible future pension increases.
