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Many elderly people wait for the letter every month – the letter that comes from EPFO ​​and tells how much pension they will get this time. But for most this amount is only Rs 1000. Medicines, vegetables and rent have all become expensive due to inflation. In such a situation, lakhs of pensioners are asking – will the minimum pension ever reach Rs 7500?

Current condition of pension: Why only Rs 1000?

There are more than 70 lakh pensioners under the EPS-95 scheme. Most of them get a pension of between Rs 1000 and Rs 3000 every month. The government ensures a minimum of Rs 1000 by providing additional help from the budget, but this amount does not come from the fund. Experts say that if it is to be increased to Rs 7500, then there will be an additional burden of about Rs 1.5 lakh crore annually.

How much will have to be deposited for pension of Rs 7500?

EPFO pension emerges from a simple formula. Suppose your average salary was Rs 15,000 and you worked for 35 years. The formula is: Pension = (Pensionable Salary × Service Years) ÷ 70

According to this: (15,000 × 35) ÷ 70 = approximately Rs 7,500. That means, if your salary is high and service is long, then Rs 7500 is possible. But the salary cap of most of the employees remains at Rs 15,000, hence they get less pension.

Government’s answer: Lack of funds is a big hurdle

When this question was raised in Parliament, the Labor Ministry clearly said – there is no proposal for pension of Rs 7500 as of now. Reason? Loss in EPS fund. The contribution that comes every year is less than the future needs. According to the actuary report, this deficit may double by 2030.

How does the fund operate? Understand in simple language

The company contributes 8.33% of your salary and the government contributes 1.16%. Overall this constitutes a pension fund. But dearness allowance (DA) is not included in it, as is the case in government pension. Therefore the pension remains fixed – does not increase for years.

Pensioners’ plea: It is impossible to survive on Rs 1000

Thousands of pensioners took to the streets in Delhi, Mumbai and Kolkata. He says – “The cost of medicine itself is Rs 3000 per month, what will happen in Rs 1000?” Trade unions have also filed a petition in the Supreme Court. Experts recommend having at least Rs 5000 + DA.

What to do if pension increases?

If the government takes the decision, then first update your EPFO ​​account. Aadhaar, bank details and life certificate are required. Must be 58 years of age and have completed 10 years of service.

What could happen next?

Experts estimate that the salary cap may be increased by 2026-27 to improve the fund. Some states have launched their own pension schemes – like the additional Rs 1000 in Tamil Nadu. But at the central level we are still waiting.