Guaranteed pension facility to employees after retirement

Let us tell you that the Employee Pension Scheme was started on 16 November 1995, which was started by the Employees Provident Fund Organization (EPFO) for people working in the organized sector. So that employees can get a guaranteed pension (Monthly Retirement Pension) for their living even after retirement.

What is the pension arrangement?

Currently, the employee is given a minimum pension of one thousand to two thousand rupees as pension under EPS. The government had made a budgetary provision for this on 1 September 2014. Since then, no change has been made in this amount. For the last several years, labor organizations and trade unions have been continuously demanding that the minimum pension of EPS be increased. They say that inflation is constantly increasing, due to which it is difficult to survive with a pension amount of Rs 1000.

What did the parliamentary committee say on EPS review

According to the Finance Express report, the parliamentary committee headed by BJP MP Basavaraj Bommai has asked the Ministry of Labor to review EPS. The report states that the committee wants the third party review of EPS to be completed by the end of 2025. According to this report,

1. The cost of living in 2024 has increased manifold compared to 2014.
2. In such a situation, the minimum pension of Rs 1000 is not enough. It needs to be increased rationally.
3. The committee also suggested that the minimum EPS pension can be increased to Rs 7,500.

People believe that if the recommendations of the committee are accepted, then there can be some relief in getting pension. Also, due to increase in pension received after retirement, the elderly will not face any problem in living their life.