The Government of India has taken a historic step aimed at augmenting the minimum monthly pension for EPS-95 pensioners to Rs 7500. This decision will positively impact more than 75 lakh pensioners in the country who have for quite some time been demanding an increase in pension.
Importance Of The Scheme
The Employees’ Pension Scheme, EPS, 1995, is one scheme under which the organized sector pensioners are provided with financial assistance after retirement. The main aim of the scheme is to provide financial security in old age to such employees. The funding for the scheme comes from both the employee and the employer’s contributions. The employee contributes 12 percent of his wages into the EPF, and the employer contributes the same amount. Out of the employer’s contribution, a portion goes to the pension fund.
Status In Present Times
Presently, higher pension benefits are provided to about 22,000 members of the Employees’ Provident Fund Organization, while 21,850 pension payment orders have been passed by the Organization and 17.48 lakh people have applied for higher pension.
Exemptions Given On Account Of The Newly Inserted Provision
The new provision will confer many advantages upon these pensioners. The seven-fold increase in the minimum pension strengthens their financial ability. They shall be more capable of fulfilling their basic needs while maintaining a respectable existence. Reforms are required to enhance the scheme further. These include the introduction of dearness allowance, free medical facilities, and transparency in the distribution of pension.
Conclusion
This bill has brought fresh hope to the pensioners. It will not just improve their financial condition; it will also improve their living standards. This stands as a clear testimony to the government’s commitment to social security.
Also Read: Old Age Pension 2025: Eligibility Criteria & Benefits Explained