EPS Sees 4% Rise In Pensioners Benefiting From Rs 1,000 Minimum Pension In FY24

Employee Pension Scheme: The share of pensioners receiving government assistance under the scheme has also increased slightly, from 27.2 per cent in FY23 to 27.3 per cent in FY24

The total corpus under the EPS has seen significant growth, nearly doubling from Rs 3.93 trillion in FY18 to Rs 7.8 trillion in FY23, driven by a rise in the membership of the EPFO.

Source : FreePik

Employee Pension Scheme: The number of pensioners receiving government support under the Employee Pension Scheme (EPS) is expected to increase for the third straight year in FY24, according to the latest annual report from the Ministry of Labour. The data reveals that beneficiaries of the minimum monthly pension of Rs 1,000 are projected to rise by nearly 4 per cent, from 2.05 million in FY23 to 2.13 million in FY24.

This rise to stagnant wages and high inflation, which have led to lower contributions from subscribers, as per experts. As a result, more pensioners require government support to receive the minimum pension amount.

The share of pensioners receiving government assistance under the scheme has also increased slightly, from 27.2 per cent in FY23 to 27.3 per cent in FY24. The scheme, implemented in September 2014, ensures a minimum monthly pension of Rs 1,000 for EPS members. The government covers any shortfall required to meet this minimum.

The report further highlights that government expenditure to sustain this minimum pension is set to increase by 26 per cent, rising from Rs 970 crore in FY23 to Rs 1,223 crore in FY24.

Calls for an increase in the minimum pension have grown stronger in recent months. The Chennai EPF Pensioners' Welfare Association recently urged Union Labour Minister Mansukh Mandaviya to raise the minimum monthly pension to Rs 9,000, including a dearness allowance. Similarly, the EPS-95 National Agitation Committee has advocated for a minimum pension of Rs 7,500.

The total corpus under the EPS has seen significant growth, nearly doubling from Rs 3.93 trillion in FY18 to Rs 7.8 trillion in FY23, driven by a rise in the membership of the Employees' Provident Fund Organisation (EPFO).

On the other hand, the Employees' Provident Fund Organisation (EPFO) has approved the implementation of a Centralised Pension Payment System (CPPS) under the Employees' Pension Scheme (EPS) of 1995. This initiative represents a significant shift towards a unified, national-level system, enabling pension disbursement through any bank and branch across India.

Mandaviya highlighted the importance of the CPPS, stating, "The approval of the Centralised Pension Payment System is a key milestone in the modernisation of the EPFO. This initiative will allow pensioners to access their pensions from any bank, at any branch, nationwide, addressing long-standing issues faced by pensioners. It ensures a seamless and efficient disbursement mechanism, and is a critical step in transforming the EPFO into a more robust, responsive, and tech-driven organisation dedicated to better serving its members and pensioners."

The CPPS is set to benefit over 7.8 million EPS pensioners, leveraging advanced IT and banking technologies to deliver a more efficient, seamless, and user-friendly pension experience.