Under UPS, government employees are entitled to receive a monthly pension on retirement, which will be 50% of their average basic salary of the last 12 months. The minimum pension guarantee has been fixed at Rs 10,000 per month.
A new demand has started arising under the Employees’ Pension Scheme (EPS) launched by the Employees’ Provident Fund Organization. Private sector employees are demanding that the government increase their minimum guaranteed pension regarding minimum pension. In fact, the central government had recently announced to give guaranteed pension by bringing UPS for government employees, in which the minimum guaranteed pension is Rs 10,000. Since then, private employees have been pressing for increasing the monthly pension under the Employees’ Pension Scheme (EPS).
Under UPS, government employees are entitled to receive a monthly pension on retirement, which will be 50% of their average basic salary of the last 12 months. The minimum pension guarantee has been fixed at Rs 10,000 per month. This pension scheme also includes dearness relief based on CPI. It is important to note that only employees who have completed 25 years of service will be eligible for full pension.
Private employees wrote a letter to the government
The Chennai EPF Pensioners Welfare Association recently wrote a letter to Union Labor and Employment Minister Mansukh Mandaviya advocating increasing the minimum monthly pension to Rs 9,000 and dearness allowance for pensioners under EPS.
The association emphasized on the inclusion of about 75 lakh pensioners under EPS and compared it with the Unified Pension Scheme introduced for government employees, which was introduced to benefit 23 lakh. Apart from this, the Chennai EPF Pensioners Welfare Association expressed its desire to put the matter of increasing the minimum pension before Prime Minister Narendra Modi.
EPFO Pension Calculation
Members of the Employees’ Provident Fund Organization (EPFO) are eligible for pension on retirement. As per the existing rules, both the employee and the employer allocate 12% of the basic salary and dearness allowance to EPF. The employer’s 12% contribution is divided into two parts, of which 8.33% goes to the Employees’ Pension Scheme (EPS) and the remaining 3.67% to EPF.
Maximum investment in pension of Rs 15,000
It is worth noting that the contribution of 8.33% for EPS is limited to a maximum of Rs 15,000, no matter how high the employee’s salary is. This limit on EPS contribution was fixed in 2014 after amendment in the EPS guidelines.
Also Read- Pension Under EPS-95: How do you get pension from PF deduction, how many years of job is required? What does the rule say
What are the demands regarding pension?
Last week, a delegation of pensioners’ organization EPS-95 National Movement Committee met senior officials of the Employees’ Provident Fund Organization and stressed its long-standing demand of a minimum monthly pension of Rs 7,500. The members also demanded full medical coverage for EPS members and their spouses, the EPS-95 National Movement Committee (NAC) said in a statement.
The EPS-95 NAC members are protesting demanding a monthly pension of Rs 7,500 instead of the current average monthly pension of only Rs 1,450. Earlier this month, Union Labour and Employment Minister Mansukh Mandaviya had met EPS-95 NAC representatives and assured them that the government would take necessary steps to meet their demand.
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