Good news is on the horizon for millions of pensioners and crores of employees in the country regarding salary and pensions. Reports indicate a proposal to increase the salary limit for pension funds under the EPFO (Employee Provident Fund Organization). Once this proposal receives the green light, both provident fund and pension contributions will see an increase. Previously, the central government announced a unified pension scheme for government employees, paving the way for similar positive news for those in the private sector. Let’s delve into the details of this significant development.

Decision Expected Soon

According to media reports, the Finance Ministry is expected to take a decision on raising the salary limit. The Labour Ministry has proposed an increase in the salary limit from the current ₹15,000 to ₹21,000, which was submitted in April. The Employee Pension Scheme (EPS) is managed by EPFO, and since September 1, 2014, the salary limit for EPS has remained at ₹15,000. An increase in this limit would substantially benefit private sector employees by providing better benefits, and the Ministry is anticipated to reach a decision shortly.

Benefits of the Increased Salary Limit

With the proposed increase in the salary limit from ₹15,000 to ₹21,000, private sector employees will see a rise in their pension and EPF contributions. If the salary limit is raised to ₹21,000, the amount of pension will automatically increase, ensuring a higher income post-retirement. Additionally, more employees will fall under this beneficial scheme, thus receiving larger financial security in their retirement years.

Demand for Increased Minimum Monthly Pension

In another development, a delegation of employees affiliated with EPS 1995 met with senior officials of the EPFO on Tuesday to reiterate their long-standing demand for a minimum monthly pension of ₹7,500. The EPS-95 National Movement Committee (NAC) stated in a release that during the meeting, they also sought full medical coverage for EPS members and their spouses. Committee President Ashok Raut indicated that EPFO issued an invitation for this meeting to address the pending demands of pensioners.

Assurances from Minister Mansukh Mandaviya

Raut mentioned that members of EPS-95 NAC have been protesting for a minimum monthly pension of ₹7,500 instead of the current average pension of ₹1,450. He noted that pensioners have been demanding an increase in the minimum pension for the past eight years, but their requests have largely gone unheeded by the government. Earlier this August, Labour and Employment Minister Mansukh Mandaviya assured the representatives of EPS-95 NAC that the government would take necessary steps to address their demands. The EPS-95 NAC represents nearly 7.5 crore working employees across various industrial sectors and approximately 78 lakh retired pensioners nationwide.

Impact on Pensioners and Employees

The potential increase in the salary limit and minimum pension reflects the government’s ongoing efforts to enhance the financial well-being of both current employees and pensioners. Here’s a summarized table elucidating the expected changes:

Aspect	Current Status	Proposed Change
EPF Salary Limit	₹15,000	₹21,000
Average Monthly Pension	₹1,450	₹7,500 (Demand)