Now the government has assured a minimum pension of ₹7,500 per month for EPS pensioners (under Employees’ Pension Scheme-95), marking rather late redemption towards the economic security of senior citizens. This decision has finally encouraged thousands of pensioners who were receiving pension as meagre as ₹1,000 per month in some cases under the old scheme.
What Is EPS-95?
EPS-95 is a pension scheme run by the Employees’ Provident Fund Organisation under which monthly pension amounts are paid to employee members of the organised sector once they have retired and to the family on account of the pensioner being deceased.
Over the past few years, pensioners under different schemes have been requesting the increase of the minimum pension citing inflation and increasing cost of living.
The New Pension Guarantee: What It Means
With this new announcement, a guaranteed minimum pension of ₹7,500 per month** has set the pace of reform in social security. Some key highlights are:
- A minimum pension under EPS-95 of ₹7,500 per month has been guaranteed for all who are eligible.
- Dearness Allowance (DA) increases linked to inflation may be considered in the future.
- Widows and dependent family members may also be entitled under this scheme.
- No reduction in pension for those currently receiving more than ₹7,500; pensioners receiving a higher pension will continue to receive it based on contribution and service duration.
Implementation Timeline
While approved in principle, the official guidelines with regard to implementation date, back pay, and DA structure should be released in the near future by the Ministry of Labour and EPFO. Pensioners should keep a close eye on updates through the EPFO portal and official press releases.
Who Gains From This Increase?
Those primarily benefiting from this reform will be-
- Retired EPS-95 members earning less than ₹7,500 per month (low pensioners)
- Family pensioners like widows or dependent children
- Employees from the private sector industries, especially before major salary revisions.