At present, the minimum pension for retired private sector employees across the country is Rs 1000. Which has remained unchanged for years. Although various employee unions have repeatedly demanded an increase in this minimum pension. Recently, labor unions demanded an increase in the minimum pension to Rs 9,000 per month under EPS 95. But will the government increase the minimum pension by this much? Many are asking questions.
What are the demands of pensioners?
Currently, the pensioners of India are saying that the minimum pension should be increased from Rs 1000 to Rs 9000 as soon as possible. Their argument is that the current minimum pension value, i.e. Rs 1000, is not enough to live on. The cost is increasing over time. Therefore, this minimum pension should be increased from Rs 1000 to Rs 9000 as soon as possible. It does not end here, a large section of pensioners in India have also demanded free medical treatment and dearness allowance.
How much will the minimum pension be?
Recently, based on a question in the Lok Sabha, various trade unions urged the government to increase the minimum EPS pension to Rs 9000. Later, the House of Labor and Employment Minister Shobha Karandlaje confirmed that various trade unions have demanded an increase in the minimum pension from Rs 1000 at the moment. However, they did not give the government any time limit for increasing this minimum pension. On this day, the Union Minister categorically said, “EPS 95 is a defined contribution defined benefit scheme.”
According to the information received from the Minister, the pension fund mainly consists of 8.3 percent contribution of employees on salaries, and the contribution of the Central Government on salaries up to Rs 15000. Needless to say, currently 47,04,270 active pensioners are receiving pension every month. This means that the entire process needs to be revised by increasing the minimum pension.
Several reports claim that despite repeated demands from various employee organizations, the government may not increase the minimum pension from Rs 1000 to Rs 9000 in one go. Some government sources claim that increasing the minimum pension in one go will put pressure on the central government’s coffers. This may affect other sectors in the future. Moreover, the government has already informed that before taking any decision regarding the minimum pension, special attention will be paid to the stability of the fund and future liabilities.
However, some reports are claiming that in order to strengthen social security and in the interest of employees, the salary limit may be increased from 25,000 to 30,000 in the future. If that happens, the monthly pension of pensioners under EPS 95 may go up from 3,570 to 12,500. In that case, if the salary limit is 25,000, then after serving for at least 10 years, a person may be given a minimum pension of 3,570 instead of 9,000 as minimum pension.
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