EPFO's CBT Meeting to Discuss Pension Hike, Employees Could Get Major Relief

Major change in EPFO ​​rules: The next meeting of the Central Board of Creator (CBT), the largest decision -making organization of the Employees Provident Fund Organization (EPFO), is scheduled to be held in Bengaluru on 10-11 October. According to the information, the most important issue in this meeting is to discuss the increase in the minimum pension under the Employees Pension Scheme (EPS-95). Currently, this minimum pension is Rs 1,000 per month, which was fixed in 2014 and has not changed since then. In the meeting, it can be considered to increase it to Rs 2,500 per month.

EPFO Likely to Raise Minimum Pension to Rs 2,500

Various trade unions and pensioners' associations have long demanded an increase in the pension amount. They say that the current Rs. 1,000 is insufficient in times of inflation. Some unions are talking about increasing the pension to Rs 7,500, but according to reports, such a large increase is unlikely in this meeting and the minimum pension may be considered to be increased to Rs 2,500.

How is EPS Pension Determined?

Pension under EPS is calculated using the following formula:

• Pension = (Pensionable Pay × Pensionable Service) ÷ 70
• Pensionable Pay: Average basic pay for the last 60 months of service + dearness allowance (maximum limit Rs 15,000).
• Pensionable Service: Total years of service, with 6 months or more considered a full year.
• A minimum of 10 years of service is required to receive a pension.
• Members are entitled to a regular pension at the age of 58.

For example, if a member has served for 35 years, they may receive a pension of approximately Rs 7,500 per month.

EPFO 3.0 project  

The CBT meeting will also consider the EPFO ​​3.0 project. Under this project, the organization is working on a plan to make the system completely digital and paperless. This will include features such as instant PF withdrawals through ATMs and UPI, real-time claim settlement, easy online death claim settlement, and automatic data integration. Major IT companies like Infosys, Wipro, and TCS have been assigned the responsibility for this technical implementation. However, due to technical complexities, it may be implemented next year.

Possible decisions of the meeting

In addition to increasing the minimum pension, the CBT meeting may also discuss digital reforms, investment policy, and the pension fund structure. While the final approval will rest with the government, the decisions of this meeting will impact the future of millions of pensioners and employees. Employee unions say that the minimum pension of Rs 1,000 is insufficient in the current inflation and should be substantially increased. Now all eyes are on this important meeting to be held on 10-11 October, where a big relief is likely to be announced for the employees.