New Delhi: Good news may come soon for lakhs of pensioners of the Employees’ Provident Fund Organization (EPFO). The Parliamentary Standing Committee on Labor has recommended increasing the minimum pension under the Employees’ Pension Scheme (EPS) from Rs 1000 to Rs 7500. In 2014, the central government had increased the pension from Rs 250 to Rs 1000, but there has been no change in it in the last 11 years. The committee said, “Inflation in 2025 has increased many times compared to 2014, so EPS pension increase is now necessary.”

Trade unions and pensioners’ organizations have long demanded an increase in the minimum pension, which the committee took seriously. Committee chairman and BJP MP Basavaraj Bommai said, “This step is important for the economic security of pensioners and their families.” According to reports, the committee has also demanded immediate action from the government keeping in mind the financial implications. Also, it has suggested to complete the third party evaluation of the EPS scheme by the end of 2025, which will assess the effectiveness and sustainability of the scheme.

Both employees and employers contribute 12% of the basic salary to the EPFO, out of which 8.33% goes to EPS and 3.67% to EPF. Pensioners say that a pension of Rs 1000 is insufficient in today’s inflation. A Labor Ministry official said, “EPS pension increase will give a dignified life to millions of retirees.” If this proposal is approved in Budget 2025, it will be a big relief for pensioners.