New Delhi:
EPFO minimum pension hike: Minimum pension has been demanded for private sector employees under EPFO for a long time. In September 2014, the central government announced a minimum pension of Rs 1,000 per month for pensioners covered under EPFO’s Employees’ Pension Scheme (EPS).
Under the EPF, the employee deposits 12 % of their basic salary in the provident fund, while the companies also have to contribute the same amount. 8.33 % of the amount deposited by the company goes to EPS and 3.67 % in EPF account.
What is the demand for EPFO members?
Pensioners’ Body EPS-95 Agitation Committee) has said that Union Labor Minister Mansukh Mandaviya (Mansukh Mandaviya) has assured timely action on their demands including minimal pension under EPS-95. I have taken a positive attitude on the long -standing demands of more than 78 lakh pensioners under EPFO.
According to the statement, apart from minimum EPS pension in different demands, pensioners ‘Body’ has demanded an increase in minimum pension, free medical facilities for retired people and their spouse for free medical facilities and Higher Pension for improvement of mistakes for Higher Pension Benefits.
Further in this statement said that the minister has assured the delegation to resolve these issues early.
Will the minimum pension increase in 2025?
Prior to Budget 2025, a delegation of EPS-95 retired employees met Finance Minister Nirmala Sitharaman (NIRMALA Sitharaman) and reiterated the demand for adding dearness allowance to Rs 7,500 per month as well as adding dearness allowance. According to the EPS-95 National Movement Committee, the Finance Minister assured the delegation that their demands would be looked into.
For the last 7-8 years, pensioners have been continuously demanding an increase in their pension. They want the existing pension of Rs 1,000 to increase to Rs 7,500 with the benefit of DA. Apart from this, they also want free medical facilities for retired employees and their life colleagues.
What will happen in the next meeting of EPFO?
The meeting of EPFO’s CBT (Central Board of Trustees) is scheduled to be held on 28 February 2025, in which the interest rate will be fixed on the Provident Fund Deposit for Financial Year 2024-25. Although the interest rate will be discussed mainly in this meeting, the issue of pension hike may also be important in this meeting.
For a long time, pensioners and social workers who have been contributing in the EPF are calling the current pension amount inadequate. He says that in view of the current inflation and increasing medical expenses, the minimum pension of Rs 1,000 is very low every month. The pressure on the government has been increasing continuously to fulfill this demand to increase pension for a long time. Now everyone’s eyes are on the next CBT meeting, in which a big decision can be taken to increase pension.
Will the steady interest rate be applied to EPFO?
The government is considering implementing a steady interest rate scheme for EPFO account holders, so that they can get fixed returns despite the fluctuations in the stock market.
Will the government create interest stabilization funds?
According to an Economic Times report, the government is considering a plan to create interest stabilization reserve fund for EPFO. The aim of this is that the account holders continue to get a stable interest rate, no matter the investment performance. The Ministry of Labor and Employment is studying the viability of this proposal i.e. feasibility.
What will be the interest rate of EPF for 2024-25?
According to media reports, EPFO can keep the EPF interest rate between 8% to 8.25% for financial year 2024-25.
What big decisions are expected to be taken in CBT meeting?
The Central Board of Trustes (CBT) organization headed by the Union Labor and Employment Minister is the highest decision-making body of the organization. It includes Employer Association, Trade Union and Officers of Central and State Governments.
The process of determining the interest rate is like this:
- EPFO proposes interest rate.
- CBT reviews this proposal and then approves it.
- After this it gets final approval from the Ministry of Finance.
- After getting the approval, this interest is deposited in the account of EPFO account holders.
EPF interest rate for 2023-24
For Financial Year 2023-24, EPFO had fixed 8.25% in the interest rate 2022-23 from 8.15%. In the next CBT meeting, it will be decided whether any change in interest rate will be made or not. This meeting can prove to be very important for EPFO account holders, so everyone’s eyes are fixed on this meeting, which can have important announcements related to provident funds.