EPFO Update: Pensioners and employees covered under EPS-95 have been demanding a minimum monthly pension of Rs 7500 a month. Pensioners body EPS-95 National Agitation Committee has called a protest at Jantar Mantar in the national capital.
EPFO News: Employees working in the private sector contribute 12% of their basic pay towards the provident fund regulated by the Employees’ Provident Fund Organisation (EPFO). Companies also match this 12% contribution and deposit the amount with the EPFO, which divides the employer’s contribution into two parts – 8.33% of the contribution goes towards Employees’ Pension Scheme (EPS) and 3.67% is deposited with the EPF scheme.
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Since 2014, the Centre has fixed a minimum pension of Rs 1000 per month to pensioners under the EPS-1995. For a long time, there have been demands to increase this pension under EPS to at least Rs 7500 per month.
Pensioners body EPS-95 National Agitation Committee has called a protest at Jantar Mantar in the national capital on Wednesday to press their demand for a minimum monthly pension of Rs 7,500.
Around 7.8 million pensioners have been knocking the EPFO’s door to increase in the minimum pension for many year, but the government has not addressed their demands, the committee said in a statement.
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What is the difference between EPF and EPS-95?
EPF and EPS are retirement benefit schemes governed by EPF & Miscellaneous Provisions Act, 1952. Under EPF, both employer and employee make contribution. On the other hand, EPS pays pension without employee contribution.
Hence, the members of the EPS-95 National Agitation Committee, outraged by the government’s failure to address their concerns, have planned a decisive protest at Jantar Mantar on July 31, it added.
Ashok Raut, president of the committee, said, “Currently, pensioners receive an average monthly pension of only Rs 1,450, with 3.6 million pensioners surviving on less than Rs 1,000 per month. We will now support those political parties that come forward to solve our problems. Our struggle will continue until our demands are met”.
Despite long-term contributions to the regular pension fund, pensioners receive very low pensions, he said, adding the current pension amount makes it difficult for an elderly couple to survive.
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What does EPS rule say on pension eligibility?
According to Employees’ Pension Scheme rules, a member of EPS is eligible to receive pension provided he/she has completed 10 years of eligible service.
Virendra Singh, the committee’s national general secretary, said, “All (political) parties, whether ruling or opposition, have a significant responsibility to ensure that the minimum pension of Rs 7,500 per month, along with dearness allowance and free medical care…so that the elderly can live with dignity in their remaining years”.
Maharashtra-headquartered EPS-95 National Agitation Committee members include around 78 lakh retired pensioners and 7.5 crore working employees of industrial sectors.
