EPF Minimum Pension 3,000 Notification Out: EPS subscribers with Rs 1,000 pension increases by 3% to 3.66 mn in FY24

EPF Minimum Pension 3,000 Notification PDF, EPS subscribers with Rs 1,000 pension increases by 3% to 3.66 mn in FY24: The total number of pensioners receiving a minimum assured pension of ₹1,000 under the Employee Pension Scheme (EPS) increased by 3% to 3.66 million in the financial year 2023-24 (FY24) compared to the previous year, according to the latest annual report from the Employees’ Provident Fund Organisation (EPFO), as reviewed by Business Standard.

The report also highlights that the central government provided financial support of ₹957 crore in FY24 to ensure the minimum pension.

Among the total pensioners, those who received government support to avail of the ₹1,000 minimum monthly pension under EPS increased slightly to 2.06 million in FY24 from 2.05 million in FY23.

Overall, the total number of pensioners under the EPS rose by nearly 4% to 7.85 million in FY24.

The minimum pension scheme under EPS was implemented in September 2014, following persistent demands from workers' unions. Under this, members receive a minimum pension of ₹1,000 per month, orphan pensioners get ₹750 per month, and children pensioners receive ₹250 per month. If the pension amount falls below these levels, the government covers the shortfall. The EPS is applicable to EPFO subscribers with a basic monthly salary of up to ₹15,000.

Experts believe that the high number of beneficiaries relying on government support for the minimum pension is a result of wage stagnation and inflation. This has led to lower contributions from subscribers, increasing their dependence on government funds.

KR Shyam Sundar, adjunct professor at the Management Development Institute, noted that many EPS subscribers are low-wage workers, which limits their pension contributions during their working years, making them more dependent on social security than their pension savings.

“EPS is a contributory scheme, meaning the pension amount is proportional to contributions. However, with stagnant wages and rising inflation, many workers end up with a small retirement corpus, necessitating government support,” he explained.

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Citing the rising cost of living, worker unions have long been advocating for an increase in the minimum monthly pension. Earlier this year, a delegation from the EPS-95 National Agitation Committee met with senior EPFO officials, demanding an increase in the minimum pension to ₹7,500. Likewise, the Chennai EPF Pensioners’ Welfare Association has written to Union Labour Minister Mansukh Mandaviya, urging a revision of the minimum pension to ₹9,000.

“With inflation rising and the minimum pension having been set nearly a decade ago, it is crucial that the government revises the amount upward. This would not only improve the financial well-being of elderly pensioners but also boost consumption expenditure in the economy,” added Sundar.

The report further revealed that 3.5 million pensioners received a pension between ₹1,001 and ₹3,000, while nearly 600,000 pensioners received between ₹3,001 and ₹5,000. Only about 29,608 pensioners received a pension above ₹5,000.

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EPF Minimum Pension 3,000 Notification

In February 2024, the Employees' Provident Fund Central Board of Trustees (CBT) proposed that the minimum pension under the Employees' Pension Scheme (EPS) should be raised to ₹3,000 per month. However, the Union Finance Ministry declined to approve the proposal. 

EPF Minimum Pension 3,000 Notification PDF Link