Relief for retirees! Panel recommends raising minimum pension to Rs 7,500

A parliamentary panel has urged the central government to raise the minimum pension for private sector employees from ₹1,000 to ₹7,500. This increase would provide significant relief to pensioners affected by inflation.

Good news for EPFO subscribers! The minimum pension for private-sector employees is expected to increase from ₹1,000 to ₹7,500, providing much-needed relief, especially for those currently receiving ₹1,000 monthly.

In 2014, the minimum pension was raised from ₹250 to ₹1,000, offering some relief. However, with rising living costs since then, the unchanged amount is insufficient for retirees' needs.

Trade unions and pensioner associations have long demanded a minimum monthly pension of ₹7,500. With high inflation, a pension increase is crucial for improving retirees' financial stability.

The Parliamentary Standing Committee on Labour has urged the government to increase the minimum pension under the EPS, citing the significant rise in inflation since 2014 and the need to address the economic concerns of pensioners and their families.

A third-party review of the scheme is underway and expected to be completed by 2025, ensuring proper implementation and timely pension disbursement.

30 years after the EPF scheme's launch, a third-party evaluation is in progress, concluding by 2025. 12% of employees' basic salary is contributed monthly to EPF, matched by employers, with a portion going to the EPS for pensions.

A pension increase would benefit millions of EPFO members nationwide, enhancing financial stability, providing a steady income post-retirement, and offering crucial inflation protection.