EPFO Update: The demand for increasing the minimum monthly pension from Rs 1,000 to Rs 7,500 has once again intensified among millions of EPS-95 pensioners across the country.
Employees’ Provident Fund Organisation (EPFO) pensioners are holding a three-day protest at Jantar Mantar in Delhi, starting March 9th. Pensioners say that the current pension has become extremely difficult to survive in the face of rising inflation.
According to a PTI report, approximately 8.1 million pensioners, under the banner of the EPS-95 National Agitation Committee, have been raising their voice for the past nine years. These include former employees of central and state government public sector undertakings, cooperatives, the private sector, mills, and media organisations.
Pensioners say that many have contributed to the EPFO for 30 to 35 years, yet they receive an average monthly pension of only around Rs 1,171. They allege that such a low pension makes it difficult for the elderly to meet their daily expenses, while many government schemes provide pensions even without contributions.
3-day protest at Jantar Mantar in New Delhi
According to the EPS-95 National Agitation Committee, a “Do or Die” protest will be held at Jantar Mantar on March 9, 10, and 11. A large number of pensioners from various states across the country will participate, and MPs from several political parties are also expected to support it.
The pensioners’ main demand is a minimum monthly pension of Rs 7,500, along with dearness allowance (DA), family pension, and free medical care for the pensioner and their spouse. Additionally, there are demands to extend higher pension benefits to all eligible employees, in accordance with the Supreme Court’s November 4, 2022, decision.
What is the government’s argument?
However, the government maintains that the EPS-95 pension fund is primarily funded by contributions from employers and the central government. Employers contribute 8.33% of employees’ salaries, while the central government contributes 1.16%, subject to a maximum salary limit of Rs 15,000. All pensions are paid from this fund.
According to the government, this pension fund is reviewed annually, and the last valuation revealed an actuarial deficit. Therefore, a sudden significant increase in the minimum pension or linking it to inflation is currently considered difficult.
Is a 7.5-fold increase possible?
Currently, the minimum pension under EPS-95 is ₹1,000 per month, which was fixed in 2014. The government had then ensured that no pensioner received less than this amount.
However, approximately 7.8 million pensioners say that the current pension is insufficient to meet their old-age expenses. Therefore, they have long demanded a minimum pension of Rs 7,500, dearness allowance, and better social security.
It remains to be seen whether the government will take any concrete decision on this demand amid growing pressure and protests.
