There is good news for pensioners under the Employees Provident Fund Organization (EPFO). After a long standing demand, EPFO has now passed a proposal to increase the minimum monthly pension to Rs 7000. Along with this, it has also been agreed to give Dearness Allowance on pension. This decision has been taken in view of the long standing demand of pensioners.
At present the minimum pension under EPS-95 (Employees’ Pension Scheme 1995) is Rs 1000 per month. But considering inflation and rising cost of living, this amount is very less. Therefore, pensioners were continuously demanding to increase it. Now the government has accepted this demand and decided to increase the minimum pension.
Big change in EPF pension
This change proposed by EPFO will benefit lakhs of pensioners. Let us know about this scheme in detail:
| Description | Information |
| name of the scheme | EPS-95 Pension Increase |
| current minimum pension | Rs 1000 per month |
| proposed minimum pension | Rs 7000 per month |
| beneficiary | Pensioners under EPS-95 |
| Additional benefits | Dearness Allowance (DA) |
| effective date | not announced yet |
| number of beneficiaries | about 65 lakhs |
| implementing agency | EPFO |
need for pension increase
At present the minimum monthly pension of Rs 1000 is not enough for pensioners. Many reasons account for this:
- Rising inflation: Inflation has increased significantly in the last few years. The prices of food items, medicines and other essential items have increased.
- Health expenditure: The elderly have to spend more on health services. This is not possible in Rs 1000.
- Economic Dependence: Many pensioners are financially dependent on their families. They will get relief from higher pension.
- Standard of Living: Rs 1000 is not enough even to maintain a minimum standard of living.
Keeping these reasons in mind, the government has decided to increase the pension.
Benefits of proposed pension increase
Raising the minimum pension to Rs 7000 will bring many benefits to pensioners:
- Better standard of living: With higher pension, pensioners will be able to improve their standard of living.
- Economic Security: The increased pension will provide them economic security.
- Health Services: They will be able to avail better health services.
- Self-reliance: Dependence on family will reduce and they will be able to become more self-reliant.
- Respectable life: Their respect in the society will increase and they will be able to live a dignified life.
provision of dearness allowance
Along with the increase in pension, provision for Dearness Allowance (DA) has also been made. This will provide further relief to pensioners. Some important things about dearness allowance:
- The rate of DA will be the same as that of government employees.
- It will be revised every 6 months.
- DA will be given on the basic amount of pension.
- This will provide relief from inflation.
Impact of pension increase
This pension increase will have a wide-ranging impact. Some of the major effects are:
- About 65 lakh pensioners will benefit.
- The purchasing power of pensioners will increase.
- The economy will gain momentum.
- Social security will be strengthened.
- The standard of living of the elderly will improve.
implementation of the plan
EPFO has taken some steps for the implementation of this scheme:
- The pension distribution system will be upgraded.
- The database of pensioners will be updated.
- Coordination will be done with banks.
- Pensioners will be made aware.
- Grievance redressal mechanism will be strengthened.
Eligibility Criteria
Following are the eligibility criteria for this enhanced pension:
- Must be registered under EPS-95.
- Must have completed minimum 10 years of service.
- Must have completed 58 years of age.
- Contributing to EPS at the time of retirement.
application process
The application process for enhanced pension will be simple:
- Go to EPFO website.
- Login to pension portal.
- Apply for pension increase.
- Upload the required documents.
- submit application.
- Track application status online.
Challenges and solutions
There are some challenges in the implementation of this scheme:
Challenges:
- large number of beneficiaries
- financial burden
- technical infrastructure
- lack of awareness
Solution:
- phased implementation
- Better management of EPFO funds
- IT system upgrade
- mass awareness campaign
future plans
The government is planning to make further reforms in the future:
- Linking pension to inflation
- provision of health insurance
- digital pension distribution
- Increase in pension investment options
conclusion
Raising the minimum pension under EPS-95 to Rs 7000 is a welcome step. This will provide relief to lakhs of pensioners and their standard of living will improve. Provision of dearness allowance is also a good step. However, the government and EPFO will have to work together for the successful implementation of this scheme. It will also be necessary to review it from time to time so that it remains relevant.
Disclaimer
This article is for general information. Although the scheme has been announced, the date of its implementation has not been decided yet. Therefore, readers are requested to visit the official website of EPFO or contact their offices to get the latest information. The terms and conditions of the scheme are subject to change.
