In India, the Employees’ Provident Fund Organization (EPFO) plays a vital role in ensuring that employees receive adequate pension benefits. A landmark ruling by the Supreme Court in November 2022 mandated the enhancement of pension amounts to meet the evolving needs of retired employees. As a result, EPFO has implemented new rules, effectively allowing an additional 1.65 lakh pensioners to benefit from improved pensions. This article explores the details of this initiative and how it impacts the existing pensioners under the Employees’ Pension Scheme (EPS-95).
Overview of Enhanced Pension Benefits
The government provided an update in Parliament last Monday regarding the status of pension enhancements. According to the official statement, a total of 21,885 payment orders have been released to individuals nationwide as part of the high pension initiative. The EPFO has completed the necessary procedures to facilitate these pension increases, and an additional 1.65 lakh pensioners have been deemed eligible for receiving higher pensions, contingent upon depositing the required extra contributions.
Numbers at a Glance
| Detail | Quantity |
|---|---|
| Total Applications Received | 17,48,768 |
| Total Demand Notices Issued | 1,65,621 |
| Pension Payment Orders Released | 21,885 |
Beneficiaries of EPS-95
Union Minister of State for Labor and Employment, Shobha Karandlaje, addressed the Lok Sabha regarding the pension enhancements. She highlighted that pensioners have applied for increased pensions under the Employees’ Pension Scheme – 1995 (EPS-95). As of January 28, 2025, notices were sent to eligible members, prompting them to deposit remaining amounts required for receiving higher pensions. Furthermore, the progress on outstanding cases is being closely monitored, with local authorities instructed to expedite the process in light of the Supreme Court’s directive from November 4, 2022.
Understanding EPS-95
EPFO continuously evolves its pension schemes to address the changing needs of employees. Among these initiatives are the New Pension Scheme and the Universal Pension Scheme, alongside the Old Pension Scheme established in 1995, known as EPS-95. This scheme provides pensions for government employees aged 58 and above. Under the EPS system, a portion of contributions made during employment goes into the EPF account (Provident Fund) while a fixed percentage is allocated to the pension account. The accumulated amount is computed and forms the basis for pension disbursement by the government.
Summary of EPS-95 Contributions
| Contribution Type | Percentage |
|---|---|
| Employee Contribution to EPF | 12% |
| Employer Contribution to EPF | 12% |
| Employer’s Pension Contribution (EPS) | 8.33% of Basic Salary |
In conclusion, the recent government initiatives signify an important step in ensuring fair pension distribution for the retired workforce. As more individuals become beneficiaries of enhanced pension schemes like EPS-95, it marks a progressive shift toward improved financial security for current and future retirees in India.