EPS Pension Hike Soon? Govt May Raise It to ₹3,000 or Even ₹7,500
The government will increase the pension threefold will EPS pension rise to ₹3,000 or ₹7,500?
Pensioners Are Awaiting the Big News, With the Government Planning an Increase.
In a much discussed government action the Indian government plans to provide drastic enhancements and avail many retired employees, some needed relief in terms of raising the minimum pension under the Employees Pension Scheme. Currently pensioners receive just about ₹1,000 per month. Of late it is being said that this amount may soon see enhancement to ₹3,000 which is a considerable amount for the good fortune of many pensioners across the country.
Long Awaited Increase: ₹250 to ₹1,000 to ₹3,000?
The last revision was made in 2014 when the pension was increased from ₹250 to ₹1,000 only. That said for the past many years, escalating variable costs ensuing from inflation have rendered this pension amount practically incapable of supporting even the basic needs of retirees. If the ₹3,000 pension hike is approved it will bring some amount of financial relieve for the existing 36.6 lakh pensioners now receiving the minimum of ₹1,000.
EPS Pensioners Try for ₹7,500: Will Arithmetic Do It Again?
The case for an increased pension of ₹7,500 has been building an additional pressure in the form of protests by a group of retired EPS who recently met with the minister of finance Nirmala Sitharaman, just prior to the opening of the 2025 Union Budget. With the government now looking at raising the minimum pension to ₹3,000, the pensioners have held out for ₹7,500 instead. So, it’s still under consideration.
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No official confirmation has been made yet, but the plea has attracted attention with commitments for further examination.
Why Is There Such a Need for a Pension Hike Right Now?
With apparent increasing distress for pensioners due to inflation the clamoring for a pension hike is being heard most loudly. The Labor Ministry had proposed in 2020 an increase in the minimum pension to ₹2,000 but that proposal was immediately rejected by the Finance Ministry. Inflation is pillaging the purchasing power of pensioners and the urgency for a pension revision has never been more clear. In fact it is necessary to increase the pension so that retired employees can sustain the minimum standards for decent living observed a government official.
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EPS Fund Strong; But Will Government Approve the Hike?
EPS does have a solid cash reserve of ₹8 lakh crore in its fund, but the government had to work out the financial implications of a pension hike very precisely. The Labor Ministry disbursed ₹1,223 crore as minimum pensions expenditure in FY 2024, which was an increase of 26% over ₹970 crore in 2023. While discussions are on, it is believed that an announcement from the department could come in the coming months.
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The pension hike can arguably change the lives of all pensioners by giving them a cushion in the twilight of their lives.
