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EPFO News : The central government has clarified its position regarding the currently discussed pension hike for EPS-95 pensioners under EPFO. The Ministry of Labor and Employment has clearly stated in the Rajya Sabha that the government has no proposal to directly increase the minimum basic pension from Rs 1,000 to Rs 7,500. This has temporarily dented the expectations of millions of pensioners.

For the past several days, there has been a strong demand from EPS-95 pensioners to increase the minimum pension. Pensioners say that the monthly pension of Rs 1,000 is insufficient considering rising inflation, health costs and the cost of daily necessities.

This demand is continuously being presented to the central government from various parts of the country including Maharashtra. Rajya Sabha member Dr. Medha Vishram Kulkarni raised the question directly to the government.

He mentioned in the House that EPS-95 pensioners in Maharashtra are demanding a minimum pension of Rs 7,500 and in the current inflationary period Rs 1,000 pension is too low. He also asked whether the government has any concrete schedule for improving the minimum pension.

Answering this question, Minister of State for Labor and Employment Ms. Shobha Karandlaje explained that the Employees Pension Scheme 1995 (EPS-95) is a scheme implemented for the purpose of social security.

Funding for this scheme is generated from two major sources. In this, employers contribute 8.33 percent of the employee’s wages, while the central government contributes 1.16 percent on a salary of Rs 15,000 per month.

At present a minimum monthly pension of Rs 1,000 is paid under EPS-95. He also said that it is mandatory to evaluate the funds of this scheme every year.

This assessment compares the cost of future pension payments with the financial position of the current fund. The government has made it clear that the financial stability and long-term sustainability of the pension fund must be taken into account while taking any decision.

Therefore, even though no decision has been taken regarding EPS-95 pension directly to Rs 7,500, the discussion has given an indication that the government is paying attention to the demand of the pensioners.