Parliamentary committee asks Centre to increase minimum EPS pension

Parliamentary committee recommends increasing minimum pension to ₹1,000, urges urgent implementation of pending Labour Codes.

Parliamentary Standing Committee on Labour, headed by senior BJP leader Basavaraj Bommai, has recommended that the Centre increase the minimum pension of ₹1,000 paid by the Employees Provident Fund Organisation (EPFO) under its Employees Pension Scheme (EPS). Trade unions and associations of pensioners have demanded an increase in the minimum pension for long.

In its report tabled in Parliament on Monday (December 16, 2024), the panel noted that over a decade has passed since the minimum pension of ₹1,000 per month was implemented. “Considering the manifold increase in the cost of living in 2024 vis-à-vis 2014 and other relevant factors, as put before the Committee by various Stakeholders during their oral evidences held in the year 2023, the Committee feel that there is a need to seriously look into the aspect of considering an upward revision of this amount,” it said.

“Notwithstanding the financial implications involved, the Committee desire the Ministry/EPFO to take up this significant task sympathetically with a sense of urgency in the larger interest of the effected pensioners and their family members so as to arrive at an amicable solution,” the report added.

Under the EPS, the Union government contributes 1.16% of wages with wage celling of ₹15,000 per month. A grant-in-aid is also given to reimburse the difference of amount between minimum pension of ₹1,000 and actual member pension. “During 2023-24, the total number of pensioners getting minimum pension of ₹1,000 per month was 20,64,805 and the total grant-in-aid for providing minimum pension of ₹1,000 per month from April 1, 2023 to March 31, 2024 was ₹957.55 crore,” the panel noted.

Noting that the four Labour Codes are yet to be implemented, the report said Meghalaya, Nagaland, West Bengal and Lakshadweep have not yet pre-published the Rules on the Code on Wages; Meghalaya, West Bengal, Andaman and Nicobar Islands, Lakshadweep and Delhi have not pre-published the Rules on the Occupational Safety, Health and Working Conditions Code; Meghalaya, Nagaland, West Bengal, Lakshadweep and Delhi have not pre-published the Rules on the Industrial Relations Code, 2020; and Meghalaya, Tamil Nadu, West Bengal, Lakshadweep and Delhi have not pre-published the Rules on the Code on Social Security.

“Considering the fact that for carrying out the provisions of the Codes, it is a statutory obligation on the States/UTs to prepare the Rules, the Committee impress upon the Ministry to further intensify their efforts and vigorously pursue the matter with all States/UTs and ensure that the follow up action viz. vetting of the draft by the Ministry of Law/ State Law Departments as required, etc. is also completed in a time bound manner so as to ensure that the four Labour Codes are implemented at the earliest,” the report said.