News of private employees getting pension of Rs 9000 every month is becoming increasingly viral. This question is arising because the central government has recently announced the Unified Pension Scheme (UPS), which guarantees the minimum pension to government employees. After this scheme, private sector employees are also demanding an increase in their pension.
At this time, private employees under Employees’ Provident Fund Organization (EPFO) get pension through Employees Pension Scheme (EPS). Currently, the minimum pension under EPS is Rs 1000 per month, which is being demanded to increase to Rs 9000. This demand is also important because the current pension amount is not sufficient due to increase in inflation and life expenditure.
EPFO Pension Scheme Overview
The table below gives details of the main points of EPFO Pension Scheme:
| Speciality | Description |
| Current minimum pension | 1000 rupees per month |
| Proposed minimum pension | 9000 rupees per month |
| Pension scheme | Employees Pension Scheme (EPS) |
| management | Employees’ Provident Fund Organization (EPFO) |
| Beneficiary | About 75 lakh pensioners |
| Pension calculation formula | (Average basic salary of last 60 months × service year) ÷ 70 |
| Proposed pay limit increase | Rs 15,000 to Rs 21,000 per month |
Demand for private employees
Private employees demand that their minimum pension be increased from Rs 1000 to Rs 9000 per month. The reasoning behind this is that their living has become difficult with the current pension amount. Apart from this, pensioners are also demanding free medical facilities and dearness allowance.
Due to pension increase
There are many reasons behind the demand for pension increase:
- Inflation: The current pension amount is not sufficient due to increase in life expenditure.
- Social Security: Pension is necessary to provide social security to pensioners.
- Comparison of government employees: After guaranteeing minimum pension to government employees, private employees are also demanding equal facility.
Possible change in pension scheme
In recent times, EPFO has proposed to increase the minimum pension to Rs 3000 per month, which is expected to be implemented from April 2025. In addition, it is also proposed to increase the salary limit from Rs 15,000 to Rs 21,000, which can increase pension calculation.
Pension calculation formula
Pension under EPS is calculated from the following formula:
Pension = Average Basic Salary of last 60 months × service year 70
Pension =
70
Average Basic Salary × Service Year of last 60 months
This formula is based on the service period of pensioners and their average basic salary.
Need for pension improvement for private employees
There is also a need for pension improvement for private sector employees because they receive less social security than government employees. The pension received under the EPS is not enough for their living, causing them to face economic crisis in old age.
Benefits of pension hike
Pension hike will not only provide economic security to pensioners, but will also improve their lifestyle. With this, they will be able to fulfill their daily expenses easily and take advantage of better health services.
conclusion
The reports of getting pension of Rs 9000 per month to private employees are only in discussion and no official announcement has been made for this. However, EPFO has proposed to increase the minimum pension to Rs 3000, which is expected to be implemented from April 2025. This growth will be a positive step for pensioners, but still a lot needs to be done so that their economic security can be ensured.
Disclaimer: The reports of getting pension of Rs 9000 per month to private employees are only in discussion and no official announcement has been made for this. Currently, the EPFO has proposed to increase the minimum pension to Rs 3000, which is expected to be implemented from April 2025.
