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 Out: EPS subscribers with Rs 1,000 pension increases by 3% to 3.66 mn in FY24: - According to the latest annual report by the Employees’ Provident Fund Organisation (EPFO), the number of pensioners receiving a minimum assured pension of ₹1,000 under the Employees’ Pension Scheme (EPS) saw a 3% increase in the financial year 2023–24 (FY24), reaching 3.66 million beneficiaries.

To support the minimum pension payout, the central government extended financial assistance worth ₹957 crore during the same year. Out of the total pensioners under EPS, those relying on government support to receive the ₹1,000 minimum pension rose slightly—from 2.05 million in FY23 to 2.06 million in FY24. In total, the EPS pensioner base grew by nearly 4%, with 7.85 million pensioners recorded in FY24.

Background of the Scheme

The ₹1,000 minimum monthly pension under EPS was introduced in September 2014 after long-standing demands by trade unions. Under this scheme:

• Members receive a minimum pension of ₹1,000/month.
• Orphans are entitled to ₹750/month.
• Children receive ₹250/month.

If any pension falls short of these amounts, the central government bridges the gap. The scheme covers EPFO subscribers earning up to ₹15,000 per month as basic salary.

Challenges Behind Low Pension Amounts

Experts believe the high number of pensioners depending on government aid highlights deeper issues such as stagnant wages and rising inflation. KR Shyam Sundar, adjunct professor at the Management Development Institute, pointed out that most EPS members are low-income workers. Their limited earnings during service years lead to smaller contributions and, eventually, lower pensions.

“Since EPS is contribution-based, pension benefits depend on the amount deposited over time. But due to stagnant wages and inflation, many retirees don’t accumulate enough to ensure adequate income, forcing them to rely on government support,” Sundar explained.

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Growing Demand for Pension Revision

With the rising cost of living, worker unions have intensified their push for a revision in the minimum pension. The EPS-95 National Agitation Committee, earlier this year, met with senior EPFO officials to demand a minimum pension hike to ₹7,500. Similarly, the Chennai EPF Pensioners’ Welfare Association wrote to Union Labour Minister Mansukh Mandaviya, proposing a revision of the minimum pension to ₹9,000.

Experts argue that the ₹1,000 minimum pension amount—unchanged since 2014—needs urgent revision to reflect current economic realities. An increase would not only improve elderly citizens' financial health but also boost economic activity by enhancing their spending capacity.

Current Pension Distribution Data

The report also sheds light on the pension distribution:

• Around 3.5 million pensioners received monthly pensions ranging between ₹1,001 and ₹3,000.
• Nearly 600,000 pensioners received between ₹3,001 and ₹5,000.
• Only about 29,608 pensioners received a pension above ₹5,000 per month.

Proposal to Raise Minimum Pension Rejected

In February 2024, the Central Board of Trustees (CBT) of EPFO recommended increasing the minimum pension under EPS to ₹3,000 per month. However, the Union Finance Ministry did not approve this proposal.

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EPF Minimum Pension ₹3,000 Notification PDF