Increase in Employees’ Pension Fund pension

Newdelhi:5/2/24:Representations have been received from various stakeholders including trade unions and public representatives to increase the minimum pension under the Employees’ Pension Scheme (EPS), 1995 from existing Rs. 1000/- per month.

The EPS, 1995 is a “Defined Contribution-Defined Benefit” Social Security Scheme. The corpus of the Employees’ Pension Fund is made up of (i) contributions by the employer @ 8.33 percent of wages; and (ii) contributions from the Central Government through budgetary support @ 1.16 percent of wages up to an amount of Rs.15,000/- per month. All 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.

The amount of a member’s pension under the Scheme is determined taking into account the pensionable period of service and pensionable salary as per following formula:

Pensionable Service X Pensionable Salary

However, the Government, for the first time, in the year 2014, provided a minimum pension of Rs. 1000 per month to the pensioners under the EPS, 1995 by providing budgetary support, which was in addition to the budgetary support of 1.16 percent of wages provided annually towards EPS to Employees’ Provident Fund Organisation (EPFO).

This information was given by Union Minister of State for Labour and Employment Shri Rameshwar Teli in a written reply in the Lok Sabha today.