‘Minimum EPS pension of Rs 1,000 is almost a joke’
Ramesh hopes govt to raise minimum EPS pension
What is the minimum EPS pension?
What is the government’s stand on increasing the minimum EPS pension amount?
Congress general secretary in-charge communications Jairam Ramesh on Wednesday criticised the government for not increasing the minimum pension of Rs 1,000 under the Employees’ Pension Scheme (EPS-95) in many years even after a Parliamentary panel recommending an urgent review of it.Ramesh says that the Rs 1,000 monthly pension under the 1995 pension scheme is completely inadequate in today’s times.The criticism came at a time when the National Democratic Alliance (NDA) government on many occasions has said that increasing the minimum EPS pension amount can affect the sustainability of the scheme.Ramesh, who held different ministries during the United Progressive Alliance (UPA) government, came down heavily on the current government, saying during the Modi government’s nearly 12-year tenure, several social security schemes have gradually weakened, or have been deliberately made weakened.Ramesh said, “The Parliamentary Standing Committee has also clearly stated in its report that the Rs 1,000 monthly pension under the 1995 pension scheme is completely inadequate in today’s times. The committee has suggested that the minimum pension should be increased to a level that ensures a dignified standard of living.A Parliamentary panel on Tuesday recommended an urgent, comprehensive review of the Rs 1,000 minimum monthly EPS pension to raise it to a more realistic and dignified level.Ramesh said even a basic facility like EPS pension has remained largely unchanged for a long time, despite rising inflation.The former minister said that it has had a direct impact on the elderly and economically weaker pensioners, who are considered among the most vulnerable sections of society.“In the current scenario, where inflation is at its peak due to poor government policies, and the cost of healthcare and daily necessities has risen sharply, a minimum EPF pension of Rs 1,000 is almost like a joke.This issue concerns the social security and dignified life of millions of retired workers, says Ramesh.Ramesh hoped that after the report by the Parliamentary Standing Committee on Labour, Textiles and Skill Development—chaired by a BJP Lok Sabha MP—the government will take note and take concrete steps in this regard.The minimum pension that an EPS account holder can get is Rs 1,000, while the maximum is R 7,500. The amount is calculated on the basis of an EPS account holder’s contributions to their EPS account and the total period involving it. The contribution can be 8.33% of the basic salary and dearness allowance (DA) or Rs 1,250 a month, whichever is higher.The government on many occasions has stated that the even the current minimum EPS pension is possible only after government contributes 1.16% of the wage to the scheme.In a reply to an unstarred question in Lok Sabha on Monday, Labour and Employment Minister Mansukh Mandaviya said that the government currently provides a minimum EPS pension of Rs 1,000 per month to eligible pensioners and any decision regarding revision must consider the sustainability of the pension fund.“The government currently supports pensioners under the EPS by providing budgetary support to ensure a minimum pension of Rs 1,000 per month. This support is in addition to the government’s annual 1.16% wage contribution to the scheme,” says Mandaviya.The government stated that it aims to ensure robust social security coverage through the EPF Scheme, EPS-95 and the Employees’ Deposit Linked Insurance (EDLI) scheme while maintaining the long-term sustainability of the funds.