Minimum pension under EPS must be enhanced: Standing committee on labour

The standing committee on labour has suggested that the labour ministry persuade the finance ministry for enhancing the minimum pension to Rs 2000 per month as against Rs 1000 under the Employees’ Pension Scheme, 1995 as the current minimum pension appears grossly inadequate.

The committee has also suggested that the Employees Provident Fund Organisation (EPFO) take up an actuarial assessment of all its pension schemes so that the monthly member pension is enhanced to a reasonable extent.

“In view of the fact that Rs 1000 per month pension which was fixed eight years back appears to be grossly inadequate now, it becomes imperative on the part of the ministry of labour & employment to pursue the matter with the ministry of finance for obtaining adequate budgetary support as recommended by the high-empowered monitoring committee,” Bhatruhari Mahtab, chairperson of the standing committee on labour, said in its report tabled in Parliament on Tuesday.


The centre contributes Rs 750 crore to Rs 1000 crore every year to EPFO towards the monthly minimum pension of Rs 1000. It is estimated that 3.2 million pensioners benefit from the minimum pension scheme.

“Besides, EPFO needs to make an actuarial assessment of all its pension schemes so that the monthly member pension is enhanced to a reasonable extent,” it added.

The labour ministry, had in 2018, 2018, constituted a high-empowered monitoring committee for complete evaluation and review of the Employees Pension Scheme, 1995. The committee in its report had recommended that the minimum monthly pension payable to the pensioner may be raised to at least Rs 2000 per month provided annual budgetary provision for the same is made.

However, the ministry of finance has not agreed to any such enhancement in minimum pension beyond Rs 1000 per month, it said.