Lok Sabha Question No. 433 (STARRED), answered on 2026-03-23
Subject: Amendment in Employees' Pension
Ministry: LABOUR AND EMPLOYMENT
Asked by: Shri Appalanaidu Kalisetti

GOVERNMENT OF INDIA MINISTRY OF LABOUR AND EMPLOYMENT LOK SABHA STARRED QUESTION NO. 433 TO BE ANSWERED ON 23.03.2026

## AMENDMENT IN EMPLOYEES' PENSION

*433. SHRI APPALANAIDU KALISETTI:

Will the Minister of LABOUR AND EMPLOYMENT be pleased to state:

(a) whether the Government has introduced or proposes to introduce any new labour law or amendment under which employees who have completed ten years of service are likely to be eligible for pension benefits; (b) if so, the details of the scheme, including eligibility criteria, pension amount, contribution structure and the date from which it has been proposed to be implemented; (c) whether the said provision is likely to be applicable to private sector employees,  contract  workers  and  unorganised  sector  workers covered under Employees' Provident Fund Organisation (EPFO) or other social security schemes and if so, the details thereof; (d) whether the Government has conducted any impact assessment on the financial and social implications of providing pension after ten years of service and if so, the details thereof; and (e)  the  details  of  the  steps  taken  or  proposed  to  be  taken  by  the Government  to  ensure  universal  pension  coverage  and  social

- security for workers under the new labour codes?

## MINISTER OF LABOUR AND EMPLOYMENT (DR. MANSUKH MANDAVIYA)

(a) to (e): A statement is laid on the Table of the House.

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STATEMENT REFERRED TO IN REPLY TO PARTS (a)  TO (e) OF LOK SABHA  STARRED  QUESTION  NO.  433  FOR  23.03.2026  BY  SHRI APPALANAIDU KALISETTI REGARDING AMENDMENT IN EMPLOYEES' PENSION.

- (a): Under the provisions of Employees' Pension Scheme, 1995 (EPS) members of the scheme are already eligible for member pension on completion of 10 years of contributory service. Under the Code on Social Security, 2020 (CoSS), the existing Employees' Pension Scheme, 1995 continues to be in force for a maximum period of one year or until it  is  replaced  by  a  revised  Employees'  Pension  Scheme  formulated under the Code.
- (b): In the EPS, the corpus of the Pension Fund is made up of (i) contribution by the employer @ 8.33 per cent of wages; and (ii) 1.16% contribution from Central Government on wages upto Rs.15,000/- per month. All benefits under the scheme are paid out of such accumulations. The fund is valued annually.

A  member  of  the  EPS  under  CoSS  will  be  eligible  for superannuation  /  early  pension  under  the  new  EPS  on  fulfilling  the following criteria:

- i.      Minimum 10 years of contributory service; and
- ii.     Attaining age of 58 years.

A member can opt for early pension anytime after completing 50 years of age upon cessation of employment subject to discounting factor at the rate of 4% for every year falling short of 58 years.

The family will also be eligible for pension in case of death of a member/member pensioner.

Similarly,  the  pension  will  be  calculated  based  on  the pensionable service and pensionable salary subject to a minimum of Rs 1000/- for member pension, widow/widower/nominee/dependent parent pension; Rs 250/- for children pension and Rs 750/- for orphan pension.

- (c): EPS is mandatory for formal sector workers whose salary at the time of joining is not more than Rs 15,000/- in establishments with 20 or more employees.
- (d) & (e): The  Code  on  Social  Security,  2020  (CoSS)  provides  for framing of suitable social security measures for unorganized workers, gig workers and platform workers on matters including those relating to  life  and  disability  cover,  health  and  maternity  benefits,  old  age protection, etc.

Further, fourteen (14) schemes of different Central Ministries/Departments have already been integrated/ mapped with the e-Shram to enhance social security coverage to unorganized workers, such as Pradhan Mantri Street Vendors Atmanirbhar Nidhi (PMSVANidhi),Pradhan Mantri Suraksha Bima Yojana (PMSBY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Mahatma Gandhi National Rural  Employment  Guarantee  scheme  (MGNREGS),  Pradhan  Mantri Awas Yojana -Gramin (PMAY-G), Ayushman Bharat -Pradhan Mantri Jan Arogya Yojana (AB-PMJAY), Pradhan Mantri Awas Yojana -Urban (PMAY-U), Pradhan Mantri Matsya Sampada Yojana (PMMSY), Pradhan Mantri Kisan Samman Nidhi (PM-KISAN), One Nation One Ration Card (ONORC) and Pradhan Mantri Matru Vandana Yojana (PMMVY), etc.

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