EPFO is considering making major changes to its Employees’ Pension Scheme (EPS-95)
EPFO: The Employees’ Provident Fund Organisation (EPFO) is considering major changes in its Employees’ Pension Scheme (EPS-95) that will benefit lakhs of pensioners. According to reports, the minimum monthly pension, which is currently Rs 1,000, will be increased fivefold to Rs 5,000. The EPFO is said to be planning to increase the minimum pension in view of inflation, rising cost of living, and the financial hardship of pensioners.
Under the ‘EPS-95’ scheme, EPFO is providing post-retirement financial assistance to eligible domestic employees. Despite the significant increase in the cost of living, the pension amount has remained unchanged for many years. Employees who have completed 10 years of joining EPFO are being given a pension after attaining the age of 58. If the minimum pension is increased, the financial condition of retired employees will improve, and their dependence on others will be reduced.
The EPFO’s plan to increase the minimum pension has been welcomed by the employees’ unions and pensioners’ unions. They have termed it a major social security reform. However, the implementation of this reform requires the approval of the Central Government. An announcement in this regard is likely to be made during the next Budget.
