EPS-95 Pension to increase? EPFO employees will get more pension from April? EPFO Pension Hike – StudyToperC

A great good news is coming out for the Power Provident Fund Organization (EPFO) pensioners. After a long-running demand, the government is now considering increasing the minimum pension amount under EPS-95 (Employees’ Pension Scheme 1995. Currently, the minimum pension under EPS-95 is ₹ 1,000 per month, which plans to increase to ₹ 3,000 or more.

This change can be applicable from April 2025, which will benefit millions of pensioners. In this article, we will discuss in detail the proposed increase in EPS-95 pension, its reasons, and its effects. Also, we will also know what are the new rules to be implemented from April and what will be the effect on EPFO ​​employees.

What is EPS-95 Pension Scheme?

EPS-95 is a social security scheme operated by EPFO. Its purpose is to provide economic security to private sector employees after retirement.

History of EPS-95 demand for pension hike

EPS-95 pensioners have been demanding an increase in minimum pension for the past several years. There are some major reasons behind this demand:

1. Rising inflation: The current ₹ 1,000 minimum pension was fixed in 2014. Since then, inflation has increased significantly.
2. Difficulty of living: Due to low pension, the elderly are having difficulty in living.
3. Need for social security: Pension is necessary to provide better social security to the elderly.
4. Comparison with other countries: The minimum pension in India is much lower than many other countries.

Main points of proposed pension hike

The government is considering making the following changes in EPS-95 pension:

1. Increase in minimum pension: It is proposed to increase the current from ₹ 1,000 to ₹ 3,000 – ₹ 5,000 per month.
2. Dearness allowance (DA): There is a plan to give regular dearness allowance to pensioners.
3. Medical benefits: Free medical facilities are being considered to pensioners and their spouse.
4. High Pension Options: Employees can be given the option to contribute to EPS based on their actual salary.

Possible new rules to be implemented from April 2025

1. Centralized Pension Payment System (CPPS): Pensioners will be able to get their pension from any bank in the country.
2. Digital Life Certificate: Pensioners will not need to go to the bank to submit life certificate every year.
3. Online Pension Tracking: Pensioners will be able to track their pension status online.
4. Automatic Pension Amendment: The pension amount will be revised automatically on the basis of inflation.

Effect of pension hike

Impact on pension holders

1. Better standard of living: High pension will improve the standard of living of pension holders.
2. Economic Security: This will provide them better economic security.
3. Health Care: They will be able to afford better health care.
4. Self -sufficiency: Pensioners will be less dependent on their family.

Impact on economy

1. Increase in consumption: High pension will increase consumption, which will speed up the economy.
2. Reduction in poverty: This will help reduce old poverty.
3. Social welfare: The condition of the elderly in the society will improve.
4. Increase in savings: More pension will also increase savings.

Financial impact on government

1. Budget pressure: High pension will increase financial pressure on the government.
2. Returning of resources: Resources from other areas may have to be transferred to pension funds.
3. Long -term plan: The government will have to make a long -term pension scheme.

Proposed model for pension hike

1. Pharyal growth

According to a proposal, an increase in pension can be done in a phased manner:

• First phase: ₹ 1,000 to ₹ 3,000 (April 2025)
• Second Phase: ₹ 3,000 to ₹ 5,000 (April 2026)
• Third phase: ₹ 5,000 to ₹ 7,500 (April 2027)

2. Income-based model

According to another proposal, the pension amount can be linked to the prior income of the pensioner:

• Minimum Pension: ₹ 3,000
• Maximum pension: 50% of pre -salary (up to maximum ₹ 30,000)

3. DA-Linked Model

In this model, pension will be linked to dearness allowance (DA):

• Base Pension: ₹ 3,000
• DA Great: Adjustment every 6 months

Necessary steps for pension increase

1. Management of financial resources: The government will have to arrange additional financial resources.
2. Legal Amendment: The EPS-95 Act will require amendment.
3. Administrative Preparation: EPFO ​​has to upgrade its system.
4. Awareness Campaign: Pensioners have to be made aware of new rules.
5. Improvement in banking system: The banking system will have to be upgraded for CPPS.

conclusion

The proposed increase in EPS-95 pension can be a major relief for millions of pensioners. This will not only improve their standard of living, but will also strengthen the condition of the elderly in the society. However, the government will face many challenges for this growth, such as managing financial resources and legal amendments.

The new rules to be implemented from April 2025 will make the pension system more efficient and transparent. Facilities like CPPS will make the process of obtaining pension for pensioners easier.

It will be interesting to see how the government moves forward on this issue. Pensioners and their families should monitor this development and be prepared for any official announcement.

Disclaimer

This article is only for informative purposes. The EPS-95 information about the increase in pension and new rules is proposed and has not yet been officially declared. Please get the latest and accurate information from EPFO’s official website or government notifications before making any decision. Writer or publishers are not responsible for any error or omission.