Hike In Minimum Pension under EPS, Complete Evaluation by 2025

A Parliamentary Standing Committee on Labour, chaired by BJP MP Basavaraj Bommai, has urged the Ministry of Labour and Employment to finish the first-ever third-party evaluation of the Employees’ Pension Scheme (EPS) by end of 2025. The panel also emphasized revising the minimum pension amount of ₹1,000, considering the sharp rise in the cost of living since the scheme’s inception in November 1995.

Key Highlights

First Third-Party Evaluation Since 1995

• The EPS, launched in November 1995, has never undergone an independent evaluation. This marks the first such assessment in nearly 30 years.

Evaluation Underway

• The Ministry has awarded the evaluation contract through the Request for Proposal (RFP) process, and the process is currently ongoing.

Deadline Set: End of 2025

• The committee has strongly recommended that the evaluation be completed within a specific timeline, ideally by December 2025, to ensure actionable insights and improvements.

Urgent Call to Raise Minimum Pension

• The panel urged the government to urgently reconsider the current minimum pension of ₹1,000, which is inadequate given the rising cost of living.

Administered by EPFO

• The Employees’ Provident Fund Organisation (EPFO) administers the EPS, catering to organized sector workers and providing pension benefits post-retirement.

No Past Evaluations

• Ministry officials confirmed that no evaluations were conducted earlier since the scheme began, highlighting a critical gap in policy review.