To quote a report, it is being said that a big jump in pensions under the Employee Pension Scheme (EPS-95) is being contemplated at the Central government level. Essentially, this means a somewhat minimum monthly pension of ₹8,000 shall be extended under the EPS-95, partially or fully, to pensioners for sustenance and minimum dignity in their days of retirement, plus DA.
What is EPS-95?
Implemented in 1995, the Employees’ Pension Scheme is basically a temporary monthly pension system for private sector employees who have retired after at least 10 years of eligible service. Millions of workers from various sectors, including many in the unorganized sector, have been receiving pensions under the scheme. However, with inflation, low pension payments, many below ₹2,000, are now increasingly facing criticism for their inability to secure a decent living.
Why Cast A Pension Hike?
With pensioners and several labor unions all asking for minimum amendments to the pension structure promising ₨7,500-₨10,000 per month, the government has been entertaining a proposal to revise EPS-95 benefits. Newspapers and pensioner few days ago, may be with their pressure, have now come up with announcements that the minimum pension will be raised to Rs. 8,000 per month, along with an additional DA indexed to inflation.
This is another way of providing social security and financial stability to the core poor and particularly those with income from the unorganized sector.
DA Inclusion Adds More Value
The inclusion of Dearness Allowance (DA) ensures that the monthly income of pensioners increases with the rate of inflation, thereby providing long-term value and protection against price rises. Previously, EPS pensions did not carry DA, whereas this change attempts to place it on par with other government schemes for pensions.
Who Will Benefit?
- All pensioners under EPS-95 up to date
- Retiring members completing 10 years of service under EPS-95
- Widows and dependents of EPS-95 members
Implementation Timeline
Even though it is yet to be declared, sources indicate that this increase might take effect in the financial year 2025–26, presumably after an official notification from the Ministry of Labour and Employment or the EPFO.
Conclusion
An increase to a minimum pension of ₹8,000 towards EPS-95 and DA is a welcome measure for our counters who live on their post-retirement earnings. It is a landmark change in pension policy and surely must improve the standard of living of hundreds of thousands of pensioners throughout India.
Also Read: 8th Pay Commission Update: Is Basic Salary Set To Rise From RS 18,000 To RS 34,000?