New Delhi: The Employees’ Provident Fund Organisation (EPFO) is set to convene its 240th Central Board of Trustees (CBT) meeting on November 19 in the national capital, with pensioners and salaried employees closely watching developments amid reports that the government may consider raising the minimum monthly pension under the Employees’ Pension Scheme (EPS) from Rs 1,000 to Rs 3,000.
The meeting, which was initially planned to be held in Gir, Gujarat, has been shifted to EPFO’s headquarters in the national capital.
According to a communication sent to CBT members, the meeting will commence at 10:15 a.m. on November 19.
Speculation around a possible pension hike has gained momentum following reports that the Labour Ministry, after consultations with the Finance Ministry, has arrived at a decision to increase the minimum EPS pension to Rs 3,000 per month. However, neither the Ministry of Labour and Employment nor the Finance Ministry has officially confirmed the proposal.
As a result, pensioners will have to wait for a formal announcement before any increase can be considered final.
The minimum monthly pension under EPS has remained unchanged at Rs 1,000 since September 2014.
The revision was approved by the CBT in February 2014, announced in the Union Budget for 2014-15, and formally notified by the government in August that year.
Over the years, employee unions and pensioners’ organisations have repeatedly sought a substantial increase in the minimum pension amount, arguing that the current payout is inadequate to meet the rising cost of living.
Several groups have demanded that the minimum monthly pension be raised to Rs 7,500, citing inflation, healthcare expenses, and the financial needs of retired workers.
The Employees’ Pension Scheme is a social security programme administered by EPFO for workers in the organised sector.
It is financed through a portion of the employer’s contribution to the Employees’ Provident Fund.
Under the existing framework, 8.33 per cent of the employer’s contribution is allocated to the pension scheme, subject to applicable wage ceilings.
Pension benefits under EPS are determined based on an employee’s pensionable salary and length of eligible service.
While the scheme prescribes a minimum pension, there is no fixed upper limit on the amount payable, with the final pension varying according to an individual’s contribution history and service tenure.
(IANS)
