EPFO subscriber alert! Minimum pension under EPS may be hiked to Rs 3,000 soon

In the interim Budget presented on February 1, Finance Minister Piyush Goyal announced a mega pension scheme-- the Pradhan Mantri Shram-Yogi Maandhan-- under which an assured monthly pension of Rs 3,000 per month will be given to workers in the unorganised sector. Virjesh Upadhyay, General Secretary, Bhartiya Mazdoor Sangh, and a member of Central Board of Trustees (CBT) of EPFO has demanded the minimum pension under EPS be hiked to Rs 3,000 per month on this basis. As of now the minimum pension given to EPFO subscribers under EPS 1995 scheme is Rs 1,000. All members of EPFO become eligible for pension under EPS after completing 10 years of contribution to EPFO.

According to reports, the Modi government may accept the demand of Bhartiya Mazdoor Sangh and could increase the minimum pension under EPS to Rs 3,000 per month. The announcement on pension hike may come before the upcoming Lok Sabha Elections. According to media reports, the Central Board of Trustees has also urged the government to increase the pension amount to Rs 3,000. 

According to an earlier report in the Economic Times, the government is actively considering the proposal to double the pension under EPS to Rs 2,000 per month. The proposal if passed will increase the government's burden from Rs 9,000 crore to Rs 12,000 crore annually.

Now, the proposal is under the consideration of the finance ministry as government has to bear the additional cost of Rs 3,000 crore if it is passed. 

Sources say the government may accept the proposal to increase the minimum pension before the Lok Sabha Elections as it will benefit nearly 40 million workers. Currently, there are around 6 million pensioners under EPS. Out of this about 4 million are getting less than Rs 1,500 per month pension.