A parliamentary panel is pushing for an immediate review of India's Employees' Pension Scheme to increase the minimum monthly pension, addressing the financial struggles of pensioners amid rising living costs.
Key Points
- Parliamentary panel recommends urgent review of the Rs 1,000 minimum monthly pension under the Employees' Pension Scheme, 1995.
- Pensioners are demanding an increase in the minimum monthly pension to Rs 7,500 due to the rising cost of living.
- The panel suggests increasing budgetary support to ensure pensioners receive a reasonable minimum pension.
- The committee recommends timely coverage of contractual labourers under social security schemes like ESI and PF.
- The panel urges mandatory registration of gig workers on the e-Shram Portal to ensure access to social security benefits.
A Parliamentary panel on Tuesday recommended an urgent, comprehensive review of the Rs 1,000 minimum monthly pension under the Employees' Pension Scheme, 1995, to raise it to a more realistic and dignified level.
This assumes significance in view of pensioners' demand to raise the pension to Rs 7,500 per month, as Rs 1,000 is not sufficient to make both ends meet.
Pensioners under the Employees' Pension Scheme 1995 (EPS-95) run by the retirement fund body EPFO had also staged a three-day protest at Jantar Mantar from March 9, for increasing the minimum monthly pension to Rs 7,500.
Panel's Observations and Recommendations
The Parliamentary Standing Committee on Labour, Textiles and Skill Development, in its 15th Report on 'Demands for Grants (2026-27)' of the ministry of labour and employment, noted that the minimum pension of Rs 1,000 per month under the Employees' Pension Scheme, 1995, has remained unchanged for a considerable period of time despite the rising cost of living.
During the course of evidence, the committee observed that numerous representations have been received from pensioners seeking an upward revision of the minimum pension, particularly considering the financial hardships faced by elderly and economically vulnerable beneficiaries.
The committee further take note of the submission of the ministry of labour and employment that the Government of India is already extending financial support towards the Scheme, including the contribution of 1.16 per cent for currently serving members of the Employees' Provident Fund Organisation and the budgetary support provided for ensuring the minimum pension of Rs. 1,000 per month.
Existing minimum pension amount is inadequate
However, the committee stated that it is of the considered view that the existing minimum pension amount is inadequate to meet even the basic needs of pensioners, particularly in the present economic scenario marked by inflation and rising health care and living expenses.
The committee, therefore, recommend that the ministry undertake an urgent and comprehensive review of the minimum pension under the Employees' Pension Scheme, 1995, with a view to enhancing it to a more realistic and dignified level.
The committee further recommend that the ministry explore the possibility of increasing budgetary support to the scheme, so as to ensure that pensioners receive a reasonable minimum pension commensurate with present-day living costs, thereby providing greater social security and financial stability to lakhs of retired workers covered under the Scheme.
© 2026