Employees’ Pension Scheme, EPS 1995 : The central government recently announced the Unified Pension Scheme (UPS) for government employees. This scheme assures pension equal to 50% of the average basic salary received in the last 12 months before retirement for employees who have worked for 25 years. The new pension scheme will be implemented in the country from April 1, 2025. After getting the assurance of assured minimum pension to the central government employees Employees Provident Fund Organisation (EPFO) Employees of the organised sector, that is, those with private jobs, who come under the scheme have also Employees Pension Scheme (EPS)Under this, the demand for increasing the monthly minimum pension has intensified.
EPF Pensioners Association made this demand from the government
According to media reports, recently the Chennai EPF Pensioners Welfare Association has sent a letter to Union Labor and Employment Minister Mansukh Mandaviya regarding increasing the minimum pension. Through this letter, the association has demanded from the central government to increase the minimum monthly pension to Rs 9,000 with dearness allowance.
Recently, the Unified Pension Scheme (UPS) was announced for central government employees, which will benefit 23 lakh people. Citing UPS in its letter, the association highlighted that about 75 lakh pensioners are covered under EPS. In such a situation, pensioners coming under EPS 1995 have been ignored. Chennai EPF Pensioners Welfare Association also wants that the matter of minimum monthly pension increase should be placed before Prime Minister Narendra Modi.
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This committee is also demanding minimum pension
Earlier in July 2024, the organization of pensioners EPS-95 National Agitation Committee (EPS-95 National Agitation Committee) did Protest in Delhi demanding minimum monthly pension of Rs 7,500 The headquarters of EPS-95 National Agitation Committee is in Maharashtra. This committee comprises of about 78 lakh retired pensioners and 7.5 crore working employees of the industrial sector.
What is the provision related to minimum pension under EPS?
In September 2014, the central government Employees Pension Scheme (EPS 1995 Scheme) The minimum pension for pensioners under the scheme was declared to be Rs 1,000 per month. However, the Labour Ministry had sent a proposal to the Finance Ministry last year, demanding to double the pension under EPS-95 to Rs 2,000 per month. But the Finance Ministry did not approve this proposal.
How is pension calculated
The current formula for calculating pension under the EPS scheme is as follows: Last 60 months basic salary X job tenure/70.
How much contribution goes into EPF and EPS during employment
12% of the basic salary and dearness allowance of people working in any company or organized sector is deposited in the PF fund every month and the same contribution goes to PF from the company’s side. 12% of the employee’s basic salary and dearness allowance goes to the EPF account every month while the company’s contribution is divided into two parts. Out of which 8.33% is deposited in the Employees’ Pension Scheme (EPS) i.e. pension fund and 3.67% goes to the Employees’ Provident Fund i.e. EPF.
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During the job, the company contributes 8.33% to the employee’s EPS account, i.e., Rs 833 is collected if the basic salary is Rs 10,000. The company’s contribution is also going to increase as the salary is increased by 10% every year.Under the EPS scheme, the employee becomes entitled to pension after retirement. Let us tell you that there is a provision of 7 types of pension for EPFO members. Some pensions are available to the family members and nominees of the EPFO member under special circumstances. Under what circumstances and how this pension can be claimed, you can check the complete details here.
Lakhs of pensioners will benefit from the approval of this proposal
If sources are to be believed, the Labor Ministry has recently proposed to the Finance Ministry to consider increasing the salary limit for calculating Employees Provident Fund contribution from Rs. 15,000 to Rs. 21,000. Let us tell you that from September 1, 2014, the salary limit for calculating the EPS pension scheme is up to Rs. 15,000. The approval of the salary limit increase proposed by the Labor Ministry will provide great relief to the employees and with this initiative, lakhs of pensioners are expected to get the benefit of increased minimum monthly pension.
