{"id":322749,"date":"2025-12-02T12:47:07","date_gmt":"2025-12-02T12:47:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/322749\/"},"modified":"2025-12-02T12:47:07","modified_gmt":"2025-12-02T12:47:07","slug":"eps-95-pension-is-government-planning-to-increase-minimum-eps-payout-from-rs-1000-to-rs-7500-heres-what-ministry-says","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/322749\/","title":{"rendered":"EPS 95 pension: Is government planning to increase minimum EPS payout from Rs 1,000 to Rs 7,500? Here’s what ministry says"},"content":{"rendered":"

Employees\u2019 Pension Scheme<\/a> (EPS<\/a>) subscribers have long been demanding to increase the minimum and maximum limits for the EPS pension from the current ranges of Rs 1,000 and Rs 7,500. However, their demands don\u2019t seem to be coming true in the near future. It was revealed from the reply of Shobha Karandlaje, Minister of State for Labour and Employment, in the Lok Sabha on Monday.
Karandlaje said that as per the valuation of the EPS fund as on March 31, 2019, there is an actuarial deficit. What it means that the designated pension fund is not generating enough returns to pay current pension to its subscribers.Minister\u2019s response about minimum EPS-95 pension amount The response came in an unstarred question asked by Balya Mama Suresh Gopinath Mhatre, Member of Parliament in Lok Sabha, who asked if the government is contemplating increasing the minimum pension under EPS-95<\/a> from Rs 1,000 to Rs 7,500 per month.<\/p>\n

Also Read: 8th Pay Commission, DA merger update: Will 58% dearness allowance be merged with basic pay? Here\u2019s what Finance Ministry says<\/a><\/p>\n

Addressing the query, Shobha explained that EPS-95 is a \u201cdefined contribution-defined benefit\u201d social security scheme. <\/p>\n

\u201cThe corpus of the Employees\u2019 Pension Fund is made up of (i) contribution by the employer @ 8.33 per cent of wages; and (ii) contribution from Central Government through budgetary support @ 1.16 per cent of wages up to an amount of Rs 15,000\/- per month,” said Karandlaje.<\/p>\n

Karandlaje further said, \u201cAll benefits under the scheme are paid out of such accumulations. The fund is valued annually as mandated under Paragraph 32 of the EPS, 1995, and as per the valuation of the fund as on 31.03.2019, there is an actuarial deficit.\u201d<\/p>\n

Also Read: New labour code 2025 retirement calculator: You can create Rs 1.82 crore higher corpus if your basic salary of Rs 32K rises under new law<\/a><\/p>\n

Over and above the minimum pension issue, there were several other critical aspects of EPS 95 pension also raised by Mhatre.<\/p>\n

In a series of questions related to EPS, Mhatre also asked-<\/p>\n

The reasons for not giving DA (Dearness Allowance) to pensioners under EPS-95, while the inflation rate is continuously increasing.Whether the government is taking any concrete steps to make it suitable for living as the present pension amount under the EPS-95 scheme is insufficient for livingWhether the government has taken cognisance of the demands made by the organisations of EPS-95 pensioners; andIf so, the action taken so far thereofIn her reply, Karandlaje said, \u201cThe government is providing a minimum pension of Rs 1,000 per month to the pensioners under the EPS, 1995, by providing budgetary support, which is in addition to the budgetary support of 1.16 per cent of wages provided annually towards EPS to Employees\u2019 Provident Fund Organisation (EPFO),\u201d the minister said.<\/p>\n

What the minister implies is that since EPS is not able to generate enough returns government has to provide additional funds to pay off the current obligations. <\/p>\n

Karandlaje further said, \u201cThe Government of India is committed to ensuring maximum benefits for workers under the EPS-95 scheme, duly taking into consideration the health of the respective funds as well as the future liabilities thereon.\u201d<\/p>\n

As EPS 95 is a defined benefit and defined contribution scheme, it means that contributions by each member is taken as defined rule and pension is also accordingly paid as per defined rule. The response from the minister indicates that since EPS 95 is facing challenges in meeting its current obligations it is unlikely that minimum pension amount will see any upward revision in near future.<\/p>\n

What is EPS-95?Employees\u2019 Pension Scheme (EPS-95) provides benefits covering a broad spectrum of contingencies, which ensures social security protection during old age for the members and their families. <\/p>\n

EPS subscribers have been demanding for a long time to increase the minimum and maximum EPS pension<\/a> limits.<\/p>\n

Benefits of EPS-95 pension-\u2022EPS members can get a pension upon superannuation at 58 years of age.<\/p>\n

\u2022They can also get an early member pension from the age of 50 years.<\/p>\n

\u2022Disability pension on permanent and total disablement during service.<\/p>\n

\u2022A widow\/widower will get the pension on the death of the member or the pensioner.<\/p>\n

\u2022Children pension for 2 children is available till they turn 25 years old after the death of the member.<\/p>\n

\u2022Orphan pension is also available to 2 orphans till the age of 25 years on the death of a member when there is no spouse or on the death of a spouse.<\/p>\n

\u2022Disabled children\/orphan pension is offered for the entire life of the disabled child\/orphan.<\/p>\n

\u2022Nominee pension is provided on the death of the member and paid for life to a person duly nominated by the member in case there is no family as defined under EPS, 1995.<\/p>\n

\u2022Pension is provided to the dependent father\/mother upon the death of a member provided there is no family or nominee of the member.<\/p>\n

\u2022Withdrawal benefit on exit from service or on superannuation provided the member has not rendered service eligible for pension.<\/p>\n","protected":false},"excerpt":{"rendered":"Employees\u2019 Pension Scheme (EPS) subscribers have long been demanding to increase the minimum and maximum limits for the…\n","protected":false},"author":2,"featured_media":322750,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[64,63,99,125064,181683,181681,181680,186,181687,181684,181686,181685,181682,184,185],"class_list":["post-322749","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-au","tag-australia","tag-business","tag-employees-pension-scheme","tag-eps","tag-eps-pension-scheme","tag-eps-95-pension-increase","tag-finance","tag-maximum-eps-pension","tag-maximum-pension-in-eps-95-scheme","tag-minimum-eps-pension","tag-minimum-pension-in-eps-95-scheme","tag-minimum-pension-under-eps-95","tag-personal-finance","tag-personalfinance"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/322749","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=322749"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/322749\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/322750"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=322749"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=322749"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=322749"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}