Lok Sabha Question No. 2132 (UNSTARRED), answered on 2024-12-09
Subject: Increase in Pension under EPS, 1995
Ministry: FINANCE
Asked by: Shri Asaduddin Owaisi

## Ministry of Finance Department of Expenditure LOK SABHA

## UNSTARRED QUESTION NO.2132

## TO BE ANSWERED ON, MONDAY, DECEMBER 9, 2024/ /AGRAHAYANA 18, 1946 (SAKA)

## INCREASE IN PENSION UNDER EPS, 1995 QUESTION

2132: Shri Asaduddin Owaisi :

## Will the Minister of Finance be pleased to state:

- (a) whether the Government has received any representations from pensioners under the  Employees'  Pension  Scheme  (EPS),  1995,  requesting  an  increase  in  the minimum pension amount;
- (b) whether  the  Government  has  any  proposal  to  increase  the  pension  under  the EPS, 1995,and if so, the details thereof;
- (c) whether the Government has conducted any assessment of these representations to increase the EPS pensions, particularly in the light of the observations made by the  Standing  Committee  on  Labour,  Textile  and  Skill  Development  in  its  30th report, and if so, the findings of such assessments;
- (d) whether the Government is considering to provide financial resources to facilitate an increase in the pension under the EPS, 1995; and
- (e) if so, the details thereof and if not, the reasons therefor?

## ANSWER

## MINISTER OF STATE FOR FINANCE

## (SHRI PANKAJ CHAUDHARY)

(a) The Ministry of Labour and Employment has informed that representations have  been  received  from  various  stakeholders  including  trade  unions  requesting increase  in  the  minimum  pension  amount  under  the  Employees'  Pension  Scheme (EPS), 1995.

(b)  &  (c) The EPS, 1995 is a 'Defined Contribution-Defined Benefit' Social Security Scheme. The corpus of the Employees' Pension Fund is made up of (i) contribution by the employer @ 8.33 per cent of wages; and (ii) contribution from Central Government through budgetary support @ 1.16 per cent of wages up to an amount of Rs.15,000/per  month. All  benefits  under  the  scheme  are  paid  out  of  such  accumulations.  The fund is valued annually as mandated under paragraph 32 of the EPS, 1995 and as per the valuation of the fund as on 31.03.2019, there is an actuarial deficit.

(d) & (e) Government,  for  the  first  time,  in  the  year  2014,  provided  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  Organisation (EPFO). The details of funds released to the EPFO during the last five years towards Government of India's statutory  contribution of  1.16  per cent  and  towards minimum pension of Rs.1000/- per month under the Employees' Pension Scheme, 1995 are as follows:

## (Rupees In crores)

| Year    | 1.16% Contribution   | Grants-in-aid towards minimum pension   | Total     |
|---------|----------------------|-----------------------------------------|-----------|
| 2019-20 | 3,696.67             | 1,400.00                                | 5,096.67  |
| 2020-21 | 6,027.61             | 1,491.40                                | 7,519.01  |
| 2021-22 | 17,359.20            | 1,119.13                                | 18,478.33 |
| 2022-23 | 7,785.00             | 1,000.00                                | 8,785.00  |
| 2023-24 | 8,167.00             | 960.00                                  | 9,127.00  |

******