EPS pension increase: EPFO ​​members will get good news soon! Pension is Rs 7500

A good news comes for crores of employees and pensioners related to the Employee President Fund Organization (EPFO). According to media reports, a standing committee of Parliament has recommended the central government to increase the minimum pension of employees in the private sector of £ 1000 to £ 7500 per month. If this recommendation applies, it can provide millions of pensioners great relief, which is currently under inflationary pressure through a low pension. The last increase in 2014, in 2014, the central government increased the minimum pension of EPFO ​​subscribers from £ 250 to £ 1000 per month. This change took place about 11 years ago and there has been no increase since then, while inflation has increased significantly. For this reason, unions and pensioner associations across the country have long demanded that the minimum pension be made at least £ 7500 per month. He argues that the daily requirements of a pensioner in contemporary times are not met with an amount of £ 1000 per month. Pension should be increased according to inflation, the parliamentary committee has requested the government to review the pension according to the inflation. In today’s times compared to 2014, the prices of important things have increased greatly, be it LPG, milk, vegetables or medicines. In such a situation, a pension of £ 1000 is inadequate and the elderly stand before financial crisis. The committee also said that the government keeps in mind the needs of pensioners and their dependent families, the government must soon make a decision in this direction. The pension fund cutting formula goes to their pension scheme part of the salary of employees working under EPFO. Currently, the basic salary of private sector employees and 12% of the DA (DESSNESS allowance) is deposited into the EPF account. Of these: The entire 12% of the employee goes to EPF, while the employer’s contribution is also 12%, of which 8.33% goes to EPS (pension scheme). The rest of the 3.67% EPF is fixed by this formula. That is, the more basic salary and service period, the more pension. Proposals for third -party valuation The committee also suggested it has been 30 years since the EPS scheme has begun, and in such a situation it must be a valuation of third parties to evaluate the stability of the scheme and the functioning of the future. The committee wants this process to be completed before the end of 2025. Proposal, even on a financial burden, will certainly bring a financial burden to the government by increasing the minimum pension, but the committee says that social and economic safety of pensioners is more important than this burden. The government must work in this direction from the point of view of social well -being, so that the elderly can have the opportunity to lead a reverent life. Conclusion: What will be the benefit? If the central government accepts the recommendations of the committee and earns the minimum pension £ 7500 per month, it will provide millions of private sector staff across the country. They will be able to avoid economic uncertainty at age and easily meet their basic needs in the era of inflation. This step can also be an important initiative for social security, which can open the way to improve other schemes and retirement systems in the future.