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The demand to increase the minimum pension under the Employees’ Pension Scheme (EPS) 1995 has been a longstanding issue. Here’s what was recently discussed in Parliament and the government’s official stance on this matter:

• Question Raised by MP Asaduddin Owaisi:
  In the Lok Sabha, he asked if the government received applications requesting an increase in the minimum pension under EPS-95 and details of any related proposals.

• Response by Minister of State for Finance, Pankaj Chaudhary:

  • The Ministry of Labour and Employment has indeed received requests from pensioners and trade unions to increase the pension amount.
  • The minister clarified that the current minimum pension is ₹1,000 per month, implemented in September 2014.

• The Employees’ Pension Fund is financed by:

  • 8.33% of the employee’s salary contributed by the employer.
  • 1.16% of the salary (up to ₹15,000 per month) contributed by the Central Government.

• The fund is evaluated annually to ensure its sustainability. The last actuarial evaluation in March 2019 reported a deficit.

• The Labour Ministry had proposed doubling the minimum pension from ₹1,000 to ₹2,000 per month.
• However, this proposal was not approved by the government due to financial constraints linked to the fund’s deficit.

While there is a push from employees and unions for an increase in the pension under EPS-95, the government has not approved the proposal due to the fund's financial health. The current minimum pension remains at ₹1,000 per month.