The central government has received representations from various stakeholders including trade unions and public representatives to increase the minimum pension under the Employees’ Pension Scheme (EPS), 1995 from existing Rs. 1000/- per month. The Government provides a minimum pension of Rs. 1000 per month to the pensioners under the EPS, 1995 by providing budgetary support, which was in addition to the budgetary support of 1.16 per cent of wages provided annually towards EPS to Employees’ Provident Fund Organization (EPFO).
The EPS, 1995 is a “Defined Contribution-Defined Benefit” Social Security Scheme. It is clarified that the amount of member’s pension under the Scheme is determined taking into account the pensionable period of service and pensionable salary as per following formula:
Pensionable Service X Pensionable Salary/70.
