After exorbitant increases in prices of essential commodities, the Indian government is considering revising the pension amount smoothly from ₹1,000 to ₹7,500 as the minimum pension under the Employees’ Pension Scheme (EPS). An increase in the pension amount would certainly relieve the financial burdens of 3.6 million pensioners suffering on account of lower pensions due to an increase in the cost of living.
Current Context And Demand Of Pensioners
The EPS-95 National Agitation Committee fighting for EPS pensioners’ cause is in serious agitation for the proposed increase. DEARNESS ALLOWANCE (DA) and free medical facility for pensioners and their spouses are their other demands. These were formally submitted for discussion to Finance Minister Nirmala Sitharaman during a pre-budget consultation on 10 January 2025. The Finance Minister assured the delegation that their worry would get a sympathetic ear.
Involving Different Stakeholders View
While pensioners demand ₹7,500 minimum pension, trade unions want ₹5,000 per month. This situation has given pensioners ample discourse space, condemning such lesser amounts for hardly anything towards basic living expenses.
Issues In Implementation
Pension enhancement inherently is a multi-pronged process. Increasingly, EPFO will have to pay more in the way of increased benefits. Perhaps the next big step will be to restructure some of the contributions from employe and employer perspectives. From an administrative perspective, it is clear that enforcing compliance to procedures for all employers will even become a big challenge. For example, EPFO has put the onus on him to upload the correct wage details for the FFT pension application, as employer compliance in this regard shall ensure processing for the higher pension. Noncompliance shall put the higher benefit out of employees’ reach.
The Way Forward
Next in the line is a government announcement for the option of increases in pension under the Union Budget 2025. Provided the scheme is cleared, implementation could begin as early as April 2025, to the great financial assurance of many retirees. Enormous steps would be if the plight of EPS pensioners gets duly addressed while they are left to enjoy the fruits of retirement.
Also Read: Retirement Age Hike Update: Govt Employees May See Extended Service Tenure