As per various media reports, a considerable pension hike in 2025 is in the pipeline, hopefully for the welfare of several million Employees’ Provident Fund Organisation (EPFO) beneficiaries. This is a matter affecting thousands of workers under the Employees’ Pension Scheme (EPS-95), whose retirements are entirely transformed if payments under an EPS scheme are considered as pension by EPFO.
The Basic Of Pension Raise
Increasing minimum pensions under the EPS-95 has had an agitating history post-1990. Pensioners, trade unions, etc., loudly complained about the minimal payouts especially with price hikes ever since the introduction of this scheme. Following this much outcry, the central government-in consultation with the **Ministry of Labour and EPFO Board of Trustees**-has apparently been in the process of coming up with a concrete proposal for pension revision that may very well see the light of day in the fiscal year 2025.
Detailing The Pension Hike As Expected
The following changes have been expected as per recent updates:
- Allowing the hike in the minimum pension from the current ₹1,000 per month to ₹2,750–₹3,000 per month.
- There is an emerging dialogue about graded slabs to be decided by pension payables concerning contributions history and duration of service.
- Extra benefits to be considered for those who have been contributing for any prolonged period (more than 20 years).
Besides being used for the inflation measure, the DR component may be periodically revised according to some consumer price indices. So, it could provide pensioners with some level of physical protection against inflation.
Eligibility And Process
Henceforth, the new pension will be an entitlement of every EPFO member under EPS-95, both for the present pensioners and the prospective ones. If the scheme is accepted, there shall be notifications on the EPFO portal, and the pensioners may be asked to update their KYC details or resubmit records verification for service so as to enjoy their upgraded pension benefits.
What Next?
The pension hike proposal may be discussed and passed at the next meeting of EPFO Central Board of Trustees (CBT), after which the Ministry of Labour will issue an official notification for implementation of the revised pension in mid to late 2025.
Conclusion
This proposed pension hike for EPFO members is a critical step to ensure that every member leads a dignified post-retirement life. With inflation, it will greatly help in providing relief to the millions of pensioners coming into the years of retirement.
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