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EPS 95 pension: Living on a pension is becoming a challenge for millions of elderly people in the country. Prices are rising, and the cost of medicines and treatment is increasing, yet pensions remain stagnant. This prompted a question in Parliament: whether the government is planning to increase the minimum pension from ₹1,000 to ₹7,500? While the response given in Parliament may have been contrary to pensioners' expectations, the discussion once again highlighted that the financial security of the elderly remains a significant issue.

In the Lok Sabha, Member of Parliament, Balya Mama Suresh Gopinath Mhatre, asked the government whether an increase in the minimum pension is being considered. He also reminded that approximately 8 million EPS-95 pensioners have been demanding for years that their pensions not be so low that a respectable life becomes impossible. The Employees' Pension Scheme, launched in 1995, aimed to provide a stable income for the elderly, with employers contributing 8.33 percent of an employee's wages and the central government contributing 1.16 percent (up to ₹15,000 in salary). However, the minimum pension of ₹1,000, established in 2014, now seems far too low.

For the past 10 years, pensioners have repeatedly demanded an increase in the minimum pension, DA, and inflation-adjusted pensions. Many elderly people have staged protests and rallies in Delhi and other states, stating that it is nearly impossible to survive on ₹1,000 a month at today's prices.

Six questions asked of the government:
Will the pension be ₹7,500? If not, why? Why is there no DA? Will the pension be made a livable amount? Has the government listened to their demands? And if so, what steps have been taken?
On this, Minister of State for Labor and Employment, Shobha Karandlaje, clearly stated that the government currently has no proposal to increase pensions. She also stated that the fund valuation conducted on March 31, 2019, found the EPS fund in actuarial deficit, meaning there is not enough money in the fund to meet future pension liabilities.

Why is this not possible? The minister explained:
The government maintains that the current guarantee of ₹1,000 is being maintained by additional funding from the budget. Therefore, a sudden increase in pensions or the addition of DA is not possible, as EPS-95 is not like a salary-based pension, in which DA is a mandatory component. It is a pre-determined contribution system, in which pensions are drawn from the same fund contributed by employees and employers.

The government did state that it was "committed to providing maximum benefits to employees," but also clarified that the fund's health and long-term financial sustainability cannot be compromised. Therefore, no concrete steps or timelines have been set at this time.

Why does this issue arise repeatedly?
This issue repeatedly comes up in the House. The reason is that a large portion of EPS-95 pensioners are those who worked in low-paying jobs and whose entire security depends on this small pension. As inflation rises, medicines become more expensive, and government employees receive DA and pay revisions, private sector pensioners feel left out. Experts say that unless additional funds are added to the fund, whether from the government or employers, it will be difficult to provide a pension of Rs. 7,500.

Disclaimer: This content has been sourced and edited from Amar Ujala. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.