Under the Employees’ Pension Scheme (EPS-95), there was a long demand of pensioners that their minimum pension should be increased. Currently, the minimum pension under EPS-95 is ₹ 1,000 per month, which was scheduled in 2014. In view of increasing inflation and medical expenses, this amount is considered inadequate. Recently, EPS-95 pensioners have met Finance Minister Nirmala Sitharaman and Labor Minister Mansukh Mandavia and demanded to increase this pension to ₹ 7,500.
In this article, we will discuss the EPS-95 pension scheme, its current status, proposed changes and other aspects related to it.
What is EPS-95 Pension Scheme?
EPS-95 scheme is a social security scheme run by Employees’ Provident Fund Organization (EPFO). Its objective is to provide financial security to the employees of the organized sector after retirement.
| Description | Acquaintance |
| Name of the scheme | Employees Pension Scheme (EPS-95) |
| Minimum pension (current) | ₹ 1,000 per month |
| Proposed minimum pension | ₹ 7,500 per month |
| Applied organization | EPFO |
| Eligibility age | 58 years |
| Employer contribution | 8.33% (of original salary) |
| Government’s contribution | 1.16% (at salary up to ₹ 15,000) |
EPS-95 Pension Scheme’s main features
- Social Security: This scheme provides financial assistance to the employees of the organized sector after retirement.
- Employer contribution: 8.33% of the employee’s basic salary is deposited by the employer in the EPS fund.
- Government contribution: The government also contributes 1.16%.
- Eligibility: Employees are entitled to pension under this scheme after completing 10 years of service.
- Pension Calculation: The amount of pension is based on the final salary and service period of the employee.
EPS-95 demand to increase pension
Current status
Currently the minimum pension under EPS-95 is ₹ 1,000 per month. This amount was set in 2014 and has not changed since then.
Proposed change
EPS-95 pensioners have made the following demands:
- The minimum pension should be done ₹ 7,500 per month.
- Dearness allowance (DA) should be included.
- Retired employees and their spouse should be given free medical facilities.
Government’s stand on EPS-95 pension hike
Finance minister assurance
Recently the EPS-95 National Exitation Committee met Finance Minister Nirmala Sitharaman. The Finance Minister has assured to consider these demands sympathetically.
Labor Minister’s statement
Labor Minister Mansukh Mandavia has also promised to take action on the demands of EPS-95 pensioners soon.
Possible benefits from EPS-95 pension hike
General profit
- Financial security: Life will be easier after retirement from increased pension.
- Relief from inflation: Dearness allowance (DA) will reduce the effect of rising prices.
- Medical facility: Free medical facility will reduce health expenses.
Special benefits for senior citizens
- Getting regular income source will improve the standard of living.
- Access to health services will be easier.
How to get EPS-95 pension?
Eligibility criteria
- The employee should complete at least 10 years of service.
- The minimum age should be 58 years.
- Both employers and employees have made regular contribution to the EPF account.
Application process
- Online process:
- Login on the EPFO portal.
- Select the option “Pension Application”.
- Upload the required documents and submit the application.
- Offline process:
- Fill the application form and submit it to the nearest EPFO office.
- Take all the necessary documents together.
EPS-95 Pension vs other schemes
| Name of the scheme | Minimum pension | Additional benefits |
| EPS -95 | ₹ 1,000 (Current), ₹ 7,500 (Proposed) | DA and Free Medical Facility |
| Atal pension scheme | ₹ 1,000 – ₹ 5,000 | Official guarantee |
| National old age plan | ₹ 200 – ₹ 500 | For old citizens |
EPS-95 pensioners problems
- Low amount: The amount of ₹ 1,000 per month is currently inadequate.
- Impact of inflation: This amount is not sufficient due to rising inflation and medical expenses.
- Lack of medical facilities: Free medical facility is not available after retirement.
conclusion
The EPS-95 scheme provides financial security to the organized sector employees after retirement. However, the current minimum pension amount is considered inadequate. If the government increases it to ₹ 7,500 and adds DA and free medical facility, then it will be beneficial for millions of employees and their families.
Disclaimer
This article is written only for the purpose of providing information. Seek expert advice before taking any financial decision or confirm official information. The final decision has not yet been taken on the EPS-95 pension hike; This proposal is under consideration.
