EPFO Pension Hike: Know how much increased in monthly
EPFO Pension Hike: The Employees’ Provident Fund Organisation (EPFO) has announced a significant hike in the minimum monthly pension for retirees under the Employees’ Pension Scheme (EPS-95). This long-awaited decision is expected to provide financial relief to millions of pensioners.
Here are the key details of the pension hike:
New Minimum Pension Amount: The minimum monthly pension for EPS-95 beneficiaries has been increased from the existing Rs 1,000 to Rs 7,500. Some reports even suggest a hike to Rs 8,000 has been approved. This is a substantial increase, aimed at helping pensioners cope with the rising cost of living.
Implementation Date: The new pension amount is expected to be implemented from May or July 2025, with the first payments at the revised rate likely being credited a month or two after the official announcement.
Inclusion of Dearness Allowance (DA): For the first time, a Dearness Allowance (DA) component will be added to the pension. This DA will be linked to the All India Consumer Price Index (AICPI), ensuring that pensions are adjusted periodically to keep pace with inflation.
Beneficiaries: This hike will benefit over 6 million pensioners who are currently receiving the minimum pension, primarily those from the informal sector, small factories, and other low-wage professions.
Approving Authority: The final approval for this hike was pending with the Labour Ministry and the Central Board of Trustees (CBT) of the EPFO. The decision has now been made to go ahead with the increase.
Protests and Demands: The demand for a higher minimum pension has been a long-standing one, with pensioners’ associations across the country protesting for a hike to as much as Rs 9,000. This new hike, while not meeting the full demand, is a major step forward and a significant victory for the pensioners.
This pension hike is seen as a crucial step towards ensuring a dignified life for senior citizens who have contributed to the economy for decades. It is a major policy change that will have a direct and positive impact on the lives of a large segment of the retired population.
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