Parliamentary Panel Demands Urgent Review of Rs 1,000 Minimum Pension Under EPS-95
A Parliamentary Standing Committee has issued a strong recommendation for an immediate and comprehensive review of the Rs 1,000 minimum monthly pension provided under the Employees’ Pension Scheme (EPS), 1995. The panel emphasized that this amount, which has remained stagnant for years, is no longer adequate to meet the basic needs of beneficiaries in the face of escalating living costs and persistent inflation.
Pensioners Demand Increase to Rs 7,500 Per Month
The committee's recommendation carries significant weight as pensioners have been vocally demanding that the minimum pension be raised to Rs 7,500 per month. Beneficiaries under the EPS-95, which is administered by the Employees' Provident Fund Organisation (EPFO), recently staged a three-day protest at Jantar Mantar from March 9, pressing for this substantial hike to address their financial hardships.
Inadequate Pension Amid Rising Inflation and Healthcare Costs
In its 15th report on the 'Demands for Grants (2026-27)' for the Ministry of Labour and Employment, the Parliamentary Standing Committee on Labour, Textiles and Skill Development highlighted that the minimum pension has not been revised for a considerable period. This stagnation persists despite significant increases in inflation and healthcare expenses, which disproportionately affect elderly and economically vulnerable beneficiaries.
The panel noted that it had received numerous representations from pensioners seeking an upward revision, underscoring the urgent need for action to alleviate their financial distress.
Government Support and the Call for a Realistic Pension Level
The Committee acknowledged the Ministry's submission that the government is providing financial support to the scheme. This includes a contribution of 1.16 percent for currently serving EPFO members and budgetary support to ensure the Rs 1,000 minimum pension. However, the panel firmly stated that the existing pension amount is inadequate even to meet basic needs in the current economic environment.
It recommended that the Ministry undertake an urgent review to enhance the payout to a "more realistic and dignified level." Furthermore, the panel suggested exploring the possibility of increased budgetary support to ensure a reasonable minimum pension that is commensurate with present-day living costs. This move aims to strengthen social security and financial stability for lakhs of retired workers across the nation.
Broader Recommendations for Labour Reforms and Worker Welfare
Beyond pension reforms, the Committee welcomed the implementation of the Labour Codes and recommended establishing a Permanent Co-ordination and Interaction Board. This board would include representatives from the Centre and states to monitor the rollout of various labour schemes effectively.
The panel also flagged critical issues such as delays in providing relief and compensation for contractual labourers after workplace accidents. It urged the timely inclusion of such workers under social security schemes like the Employees’ State Insurance (ESI) and Provident Fund.
Focus on Gig Workers and Systematic Budgeting
Highlighting the growing role of gig workers in urban supply chains, the committee recommended mandatory registration of these workers by aggregators on the e-Shram portal. This registration should ensure continued access to benefits such as insurance and accident coverage, thereby extending social security to this emerging workforce.
The Committee called for realistic, evidence-based budgeting by the Ministry of Labour and Employment. It emphasized the need for systematic provisioning for awareness campaigns and IT infrastructure under the Labour Codes. Additionally, the panel advised faster filling of vacancies in the Directorate General of Mines Safety (DGMS) and stricter action against illegal mining to safeguard worker safety.
Expediting Revisions for ESI Coverage
Further recommendations included expediting the revision of the wage ceiling under the Employees’ State Insurance Corporation (ESIC). This revision aims to expand coverage while ensuring the financial sustainability of the ESI fund, thereby enhancing social security for a broader segment of the workforce.
The comprehensive report underscores the urgent need for policy adjustments to address the evolving economic challenges faced by pensioners and workers, ensuring their dignity and financial security in a rapidly changing landscape.
