The Supreme Court of India has provided a great relief to lakhs of retired employees under the Employees’ Pension Scheme (EPS-95) by deciding that the minimum pension for employees is fixed at ₹7,500 per month and DA also has to be paid thereon. This judgment came after years of litigations and a nationwide hartal by pensioners demanding justice and a financial dignity to lead their lives in retirement.
Background Of The Case
The EPS under which pension schemes are available mainly to those employees who are engaged in the organized sector is administered by the Employees’ Provident Fund Organisation (EPFO). What a pity that the pension so paid under EPS-95 accounts to a minimum of ₹1,000 to a maximum of ₹2,500 per month, which is hardly enough for the present economy, inflation, and healthcare expenses of senior citizens.
Supreme Court Verdict Highlights
The pensioners, along with different organisations like the National Agitation Committee (NAC), had been demanding that the minimum pension amount be fixed at ₹7,500 and that DA be revised regularly on a basis of inflation. From a position of inaction by the authorities concerned for years, the matter very recently found its way to the Supreme Court.
- Minimum Pension Fixed at ₹7,500 per Month: This will be the new minimum amount of pension to all eligible EPS-95 pensioners.
- Full DA (Dearness Allowance) Granted: Taking full DA into account implies that pension amounts are revised with inflation trends, thus giving them regular increases.
- Pension Revision To Be Implemented on a Pan-India Basis: EPFO has been directed to coordinate with its regional offices so as to guarantee speedy implementation.
- Eligibility Criteria Defined: Only those who have contributed to EPS-95 and are otherwise eligible according to age/service conditions will benefit.
Reaction From Pensioners
The decision has been called a “victory for justice” by pensioners’ groups. Many have hailed this decision as life-transforming and a step that will enable them to afford medicines and basic qualities of food and utilities. A few organizations have also planned to honor the Supreme Court bench that decided the case.
Financial And Social Impact
Although this decision will create pressure on the EPFO fund, experts agree that it is a necessary step toward social security reforms. There are over 6.5 million EPS-95 pensioners affected, so this decision is supposed to bring about the best possible upliftment in the standard of living of a large section of the retired work force in India.
Conclusion
This Supreme Court judgment has been a landmark in the pension reform journey of India. It remedies financial aspects at least partially, but more importantly, it bestows dignity and security on India’s senior citizens who in the passing of years had helped in building the nation’s economy.
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