EPFO (Employees ‘Provident Fund Organization) and EPS-95 (Employees’ Pension Scheme 1995 in India are an important safety shield for employees. Under these schemes, employees are provided economic security after retirement. Recently, there are many discussions demanding an increase in minimum pension under EPS-95. In this article, we will discuss all important information related to EPS-95 pension, including demand for increase in minimum pension and changes in salary limits.
Under the EPS-95, pensioners currently get a minimum pension of ₹ 1,000, which is being demanded to increase to ₹ 7,500. This demand is being made in view of the increasing pressure of inflation, so that pensioners are easy to live. In addition, it has been proposed to increase the salary limit from ₹ 15,000 to ₹ 21,000, which will increase the pension amount.
The new rules of EPFO also include features like extracting PF from ATM and getting pension from any bank. These changes will make retirement planning even easier.
EPFO Pension Scheme Overview
| Parameter | Description |
| Name of the scheme | EPS -95 (Employees Pension Scheme 1995) |
| Current pay limit | ₹ 15,000 |
| Proposed salary limit 2025 | ₹ 21,000 |
| Minimum pension | ₹ 1,000 (Demand: ₹ 7,500) |
| Maximum pension | ₹ 7,500 (up to ₹ 10,050 on the new border) |
| Pension formula | (Pensionable salary × service period) ÷ 70 |
| Application process | Online (EPFO portal) or offline (Form 10D) |
Demand for increase in minimum pension
Pensioners have demanded to increase the minimum pension for a long time. He argues that the current ₹ 1,000 pension is inadequate for living in this era of inflation. Finance Minister Nirmala Sitharaman has also been met on this demand. Pensioners are also demanding to include dearness allowance (DA) in pension.
Impact of change in pay limit
Increasing the salary limit from ₹ 15,000 to ₹ 21,000 will increase the pension amount. This will not only strengthen pensioners financially, but will also increase the contribution of the employer to the EPF, which will strengthen the pension fund. This change can prove to be a major benefit for employees.
Pension calculation formula
Pension under EPS-95 is calculated on the basis of the following formula:
Monthly Pension = Pensionable Salary × Service Period 70
Monthly Pension =
70
Pensionable pay × service period
This sutra is based on the salary and service period of the employee. For example, if an employee’s pensionable salary is ₹ 15,000 and he has worked 10 years, then he will have a monthly pension:
Monthly Pension = 15,000 × 1070 = 2,143 rupees
Monthly Pension =
70
15,000 × 10
= 2,143 rupees
Benefits of new rules
The new rules of EPFO will provide many benefits to pensioners:
- Increase in pension amount: Pension amount will increase with the new salary limit.
- PF withdrawal from ATM: Now pensioners will be able to withdraw your PF money through ATM.
- Pension from any bank: Pensioners will now be able to get their pension from any bank.
- Dearness allowance (DA): There is a demand to include dearness allowance in pension.
Application process
Applications for pension under EPS-95 can be made in both online or offline methods:
- Online application: Application can be made through EPFO portal.
- Offline application: Offline application can be made by filling Form 10D.
conclusion
Under the EPS-95, an increase in minimum pension and change in salary limit can be an important step for pensioners. This change will help in making pensioners financially strong. However, the official announcement is awaited by the government to implement these changes.
Disclaimer: This article is for general information and the information given in it should not be considered as an official announcement. Official decisions should be awaited by the government to increase pension under EPS-95 and change the salary limit.
