New Delhi – The Employees’ Provident Fund Organisation (EPFO) has brought significant relief to millions of pensioners. The minimum monthly pension has been increased from ₹1,000 to ₹7,500. This is a big step. It will help many retired workers. They will now have more financial security. The new pension amount is effective from October 2025.
This decision comes after years of demands. Pensioners and trade unions have been asking for a hike. They said the old amount was too low. It was not enough to live on. The rising cost of living made it very difficult for them.
A Long-Awaited Change
For a long time, the minimum pension was only ₹1,000 per month. This was very little money. It was hard for retired people to pay for their daily needs. They struggled with expenses like food, medicine, and housing.
Pensioners’ associations held many protests. They demanded a higher pension. They wanted to live with dignity. Finally, their voices have been heard. The government has taken a positive step.
The Central Board of Trustees (CBT) of the EPFO met recently. They discussed many important issues. The pension hike was a major topic. The board approved the increase. This decision will benefit around 78 lakh pensioners.
What is the EPS-95 Scheme?
The Employees’ Pension Scheme (EPS) started in 1995. It is for employees in the private sector. It provides them with a pension after they retire.
Under this scheme, both the employee and the employer contribute to a fund. A part of the employer’s contribution goes into the pension fund. The government also contributes a small amount.
To get a pension, an employee must have at least 10 years of service. They can start receiving the pension after the age of 58. This scheme helps workers have a steady income in their old age.
Key Features of the New Pension Hike
The new pension rules bring some important changes:
- Higher Minimum Pension: The biggest change is the increase in the minimum pension. It is now ₹7,500 per month. This is a big jump from ₹1,000.
- Dearness Allowance (DA): The pension will now include Dearness Allowance. DA helps to deal with inflation. It will be adjusted twice a year. This means the pension amount will increase with rising prices.
- More Financial Stability: With a higher pension, retired workers will have more money. This will help them manage their expenses better. They can afford better healthcare and food. They will not have to depend on their families as much.
For example, if the Dearness Allowance is 50%, a pensioner will get ₹11,250 per month. This is a good amount for a comfortable life.
Why Was This Hike Necessary?
The cost of everything has gone up. The old pension of ₹1,000 was not enough. Many pensioners faced financial problems. They could not afford basic things.
The pension hike was very important. It will give retired workers a sense of security. They have worked hard all their lives. They deserve to have a peaceful retirement.
Trade unions and pensioners’ groups are happy with the decision. They have been fighting for this for a long time. They say it is a historic victory for workers.
What Does This Mean for Pensioners?
The pension hike will have a big impact on the lives of millions. Here is how it will help:
- Improved Quality of Life: A higher income means a better standard of living. Pensioners can now live more comfortably.
- Better Healthcare: They can afford better medical treatment. Health problems are common in old age. This will help them stay healthy.
- Reduced Stress: Financial worries can cause a lot of stress. A higher pension will reduce this stress. Pensioners can live a more relaxed life.
- Boost to the Economy: When people have more money, they spend more. This helps local businesses and the economy.
Looking Ahead
The government’s decision to increase the minimum pension is a welcome move. It shows a commitment to social security. It will help millions of senior citizens live with dignity.
The EPFO is also working on other improvements. They are upgrading their technology to provide better services. This will make it easier for members to access their accounts and services.
The pension hike is a big step in the right direction. It will bring smiles to the faces of many retired workers. They can now look forward to a more secure and comfortable future.
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