The next meeting of the EPFO is expected to decide on raising the minimum pension after 11 years. Currently, retired private sector employees receive a minimum pension of ₹1,000 per month. EPFO 3.0 will also be discussed. Learn more.
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EPFO Pension: The Central Board of Trustees (CBT), the highest policy-making body of the Employees’ Provident Fund Organization (EPFO), is meeting in Bengaluru on October 10 and 11. The most important issue at this meeting will be the proposal to increase the minimum pension for employees. It is currently ₹1,000. According to reports, a proposal to increase it to ₹2,500 per month may be discussed. If this happens, it will be the first change in the pension rate in 11 years.
What is EPS-95?
The Employees’ Pension Scheme 1995 (EPS-95) is a social security scheme that provides a fixed pension to employees after retirement. Under this scheme, the employer contributes 8.33% of the employee’s salary to the fund, while the central government contributes 1.16%. This contribution is capped at a maximum salary of ₹15,000.
Even if an employee’s fund doesn’t have sufficient funds, a minimum pension of ₹1,000 is still provided under EPS-95 with government assistance. However, the fund is now facing an actuarial deficit, meaning it doesn’t have the promised pension.
Under EPS-95, employees aged 58 years or older with at least 10 years of continuous service are eligible to receive a regular pension.
Demand for a Pension Increase
Trade unions and pensioners have long demanded an increase in pensions. They say that a ₹1,000 pension doesn’t even meet basic needs in today’s times, while inflation is constantly rising. Retired employees and organizations also say that providing such a low pension to those who have worked for years and contributed to the fund is unfair and insulting.
Unions are demanding a minimum pension of ₹7,500. However, given the current situation, a proposal to increase it to ₹2,500 per month may be proposed.
Other Expectations from the CBT Meeting
This meeting, taking place after seven months, is also likely to discuss EPFO 3.0. This is a digital upgrade project that will completely digitize EPF transactions and claim processes. This will make it easier for employees to withdraw and claim funds when they need them.
Reforms under EPFO 3.0
Facility to withdraw PF through ATMs and UPI
Auto-claim settlement
Paperless process through digital services
OTP-based verification system
Easy process for death claims
Simplification of data update and correction system
Overall, this October meeting could bring significant benefits to employees and pensioners in the form of digital convenience, faster service, and increased pensions.
