Will EPF pension be raised soon? Here are parliamentary panel’s recommendations | Mint

The Parliamentary Standing Committee on Labour recently recommended that the government raise the minimum pension, which currently stands at ₹1,000, given by the Employee Provident Fund Organisation (EPFO) under its Employee Pension Scheme (EPS).

In its report tabled in Parliament on December 16, the panel noted that over a decade has passed since the minimum pension of ₹1,000 per month was implemented.

Under the EPS, the government contributes 1.16 per cent of wages with a wage ceiling of ₹15,000 a month. A grant-in-aid is also given to reimburse the difference of amount between the minimum pension of ₹1,000 and the actual member pension.

Higher cost of living

“Considering the manifold increase in the cost of living in 2024 vis-à-vis 2014 and other relevant factors, as put before the committee by various stakeholders during their oral evidence held in the year 2023, the committee feel that there is a need to seriously look into the aspect of considering an upward revision of this amount,” the panel recommended.

“Notwithstanding the financial implications involved, the committee desire the Ministry/EPFO to take up this significant task sympathetically with a sense of urgency in the larger interest of the affected pensioners and their family members so as to arrive at an amicable solution,” the report added.

Meanwhile, in another development, the government has approved a Centralised Pension Payment System for the EPS that will enable disbursement from any bank in the country. It will be rolled out on January 1, 2025, and is expected to benefit over 78 lakh pensioners.

It is noteworthy that the Union Finance Ministry declined the Labour Ministry’s request to raise the monthly minimum pension in the Employee Pension Scheme in February. At that time, the proposal was sent to raise the pension from ₹1,000 to ₹2,000 based on recommendations from a government-appointed monitoring committee.