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The Employees' Provident Fund Organisation (EPFO) is at the center of discussions as employee groups have placed significant demands before Finance Minister Nirmala Sitharaman. Ahead of the Union Budget 2025, these demands include increasing the minimum pension under the EPFO pension scheme, which could bring much-needed relief to millions of employees.

Key Demand: Minimum Pension Increase

Employee organizations have requested that the minimum pension under the Employees' Pension Scheme (EPS-95) be raised from ₹1,000 to ₹7,500 per month. This demand addresses the financial struggles of pensioners who continue to receive low monthly payouts despite earlier promises.

• Current Pension: ₹1,000 per month (minimum).
• Proposed Increase: ₹7,500 per month.
• Alternative Suggestions: Some trade unions suggest raising it to ₹5,000 per month.

Meeting with the Finance Minister

On January 10, 2025, a delegation of EPS-95 pensioners met with Finance Minister Nirmala Sitharaman to present their demands, which include:

1. Increasing the minimum monthly pension to ₹7,500.
2. Adding a Dearness Allowance (DA) to the pension amount.
3. Providing free medical treatment for pensioners and their spouses.

The Finance Minister assured the delegation that these demands would be considered seriously, raising hopes for positive changes in the upcoming budget.

Current Status of EPS-95

The EPFO framework involves two types of contributions:

1. Lump Sum Withdrawal Account: For retirement savings.
2. Pension Account: For monthly payouts after retirement.

• Employer’s Contribution: 12% of salary, with 8.33% allocated to EPS for pensions and 3.67% to EPF.
• Government Contribution: An additional 1.16%.

Perspectives on Pension Amount

• Bharatiya Mazdoor Sangh (BMS): Recommends increasing the minimum pension to ₹5,000 per month and adding Variable Dearness Allowance (VDA).
• Other Trade Unions: Agree with the ₹5,000 suggestion but believe the amount may not suffice for pensioners' basic needs.
• Movement Committee: Advocates for ₹7,500 as the minimum, considering inflation and rising living costs.

What’s Next?

The final decision may be announced in the Union Budget 2025 on February 1, 2025. If the proposed increase is approved, it will benefit millions of private sector employees and provide much-needed financial security.

Stay tuned for updates on this critical development that could shape the future of employee pensions.