Minimum Pension May Rise to Rs 3,570: Big Relief for Retirees
Unions have demanded an increase in the minimum pension for retired private employees from ₹1,000 to ₹9,000. Although the government has acknowledged this demand, no timeline has been given.
Minimum Pension
Currently, retired private employees get a minimum pension of ₹1,000, which has been the same for a long time. The demand for a pension hike has been raised for a while. Many had hoped for an increase during the last budget, but their hopes were dashed.
Pension
There was a demand for a minimum pension of ₹7,000, but nothing actually increased. Now, the demand for a minimum pension hike is public again. Recently, labor unions demanded a minimum monthly pension of ₹9,000 under EPS 95.
Pension Increase
Recently, Minister of State for Labour and Employment, Shobha Karandlaje, confirmed that various trade unions have demanded a pension increase from the current minimum of ₹1,000. However, they have not set any deadline for this minimum pension hike.
EPS 95
The Union Minister emphasized that EPS 95 is a defined contribution, defined benefit scheme. The pension fund is mainly formed by employee contributions of 8.3% of their salary and the central government's contribution on salaries up to ₹15,000.
Pension
Currently, 4,704,270 active pensioners receive a monthly pension. This means the entire process needs to be revised by increasing the minimum pension.
More Details
Some reports claim that to strengthen social security and in the interest of employees, the salary limit may be increased to ₹25,000-₹30,000. In that case, the minimum pension would be between ₹3,570 and ₹12,500.
Minimum Pension
If someone's salary limit is ₹25,000, after at least 10 years of service, they might receive a minimum pension of ₹3,570 instead of ₹9,000. However, it's hard to say when this amount will increase. It's a matter of waiting. The demand for an increase has been long-standing. Now, we have to see how much it actually increases.
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