Important news for EPFO employees. Private sector employees under the EPFO may receive good news. It is expected that the pension of private sector employees will be increased. Trade unions have demanded an increase in the minimum pension under EPS 95. They have again demanded that the pension be increased from ₹1,000 to ₹9,000. This issue has reached Parliament and the Supreme Court. Because of this, the issue of increasing pensions has once again come under discussion.

What is EPS 95?

EPS 95 stands for Employee Pension Scheme 1995. This is a government pension scheme designed for employees working in the private sector. It is administered by the EPFO.

When an employee deposits money into the PF, 8.3% of the employer's contribution is deposited into the pension fund. The government also provides a 1.16% return on salaries up to ₹15,000. This provides the employee with a monthly pension upon retirement.

Currently, under EPS 95, the pension amount is determined based on salary and years of service. The minimum pension is ₹1,000. There are now calls to increase this pension. The ₹7,500 pension is only for employees with a salary limit of ₹15,000 and 35 years of service. However, some pensioners receive higher pensions based on their years of service. Some receive pensions exceeding ₹9,000.

Will the pension increase to Rs 9000?

There is a demand to increase the minimum pension from Rs 1,000 to Rs 9,000. This means a nine-fold increase in pensions. Currently, the EPS is based on a fixed percentage, and the government conducts actuarial valuations for this every year. However, a significant increase could put pressure on the pension fund. Therefore, a decision on this matter is currently unlikely.

PC: Saamtv