Highlighting the growing financial strain on retirees, a Parliamentary panel has called for a revision of the minimum pension under the Employees’ Pension Scheme.
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, recommended an urgent and comprehensive review of the ₹1,000 minimum monthly pension under the Employees’ Pension Scheme, 1995.
The issue gains importance amid pensioners’ demand to raise the minimum pension to ₹7,500 per month, stating that ₹1,000 is insufficient to meet basic needs. Pensioners under EPS-95, managed by Employees’ Provident Fund Organisation, also staged a 3-day protest at Jantar Mantar from March 9, seeking an increase.
The committee noted that the ₹1,000 pension has remained unchanged for a long time despite rising living costs. It observed multiple representations from pensioners highlighting financial hardship, especially among elderly and economically vulnerable groups.
While taking note of the government’s contribution of 1.16% for current EPFO members and budgetary support to maintain the ₹1,000 pension, the panel said the amount is inadequate in the present economic scenario, marked by inflation and rising healthcare and living expenses.
The committee recommended that the Ministry review the pension structure to ensure a more realistic and dignified amount. It also suggested exploring higher budgetary support so pensioners receive a minimum pension aligned with current living costs, improving social security and financial stability for lakhs of retirees.
Beyond pensions, the panel made several key recommendations:
- Set up a Permanent Co-ordination and Interaction Board with Centre and States to oversee labour schemes
- Ensure timely social security coverage for contractual workers under ESI and PF, especially after workplace accidents
- Make registration of gig workers on the e-Shram Portal mandatory, with at least 1-year validity and continued benefits
- Include clear provisions for gig and platform workers in labour codes, defining aggregator responsibilities
- Improve budget planning with evidence-based frameworks and regular expenditure analysis
- Allocate funds for awareness, capacity building, and IT systems for labour code implementation
- Fill vacancies and adopt modern monitoring technologies in DGMS
- Build a database of registered and unregistered mines and act against illegal mining
- Adopt outcome-based planning for international cooperation
- Expedite revision of wage ceiling under ESIC to expand coverage
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