Reducing occasional differences, one hopes that fresh measures of minimum pension under the Employees’ Pension Scheme (EPS) administered by the EPFO will be discussed as of April 2025. Current updates are as follows.
Minimum Pension Increase
- Current Pension: ₹1,000 per month (set in 2014).
- Proposed Hike: Proposed increased the minimum pension to ₹2,000 per month.
- Status: Labour Ministry had put this in its pre-budget suggestions for FY25; however, the Finance
- Ministry turned it down in 2020, and the proposal is still being considered.
House Panel Recommendations
A Parliamentary Standing Committee led by MP Basavaraj S. Bommai has urged the Labour Ministry and EPFO to expedite the evaluation of the EPS and give thought to increasing the minimum pension due to the significant rise in the cost of living since 2014.
Demands by Pensioners and Trade Unions
Various associations of pensioners and trade unions have been demanding a substantial raise by proposing a minimum pension of ₹7,500 per month along with DA (Dearness Allowance). EPS-95-National Agitation Committee has reported that Union Labor Minister Mansukh Mandaviya has assured timely action on these demands.
Implementation Timeline
The Labour Ministry is, however, a little more pressed to complete the assessment of EPS within the end of the year 2025, and as of now, no clear date has been presented in connection with the timeline for any increase in pension.
Legal Developments
In a relatively recent ruling, the Kerala High Court ruled that the EPFO cannot deny higher pension benefits to employees who contributed on the basis of full salary during their service, irrespective of whether this was by bulk payment or late remittance. This order is likely to influence the immediate deliberations concerning pension rights.
Please note that these developments are subject to change, depending on decisions made by the government and further evaluations.
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