Over 47 lakh members getting less than `9,000 monthly pension under Employees’ Pension Scheme 1995: Minister

New Delhi: The total number of active member pensioners under Employees’ Pension Scheme 1995 (EPS-95) receiving pension of less than Rs 9,000 is 47.04 lakh in the country, Parliament was informed on Monday.

According to the dashboard of Employees’ Provident Fund Organisation (EPFO), the total number of current pensioners under the EPS-95 is 82,11,182.

In a written reply to the Lok Sabha on Monday, Minister of State for Labour and Employment Shobha Karandlaje stated, “The total number of active member pensioners under EPS-95 receiving pension of less than Rs 9,000 is 47,04,270.”

She told the House that representations have been received from various stakeholders, including trade unions and public representatives to increase the minimum pension under the scheme from the existing Rs 1,000 per month.

Employees’ Pension Scheme, 1995 is a ‘Defined Contribution-Defined Benefit’ social security scheme.

The corpus of the Employees’ Pension Fund is made up of contribution by the employer at the rate of 8.33 per cent of wages; and 1.16 per cent contribution from central government on wages up to Rs 15,000 per month. All benefits under the scheme are paid out of this fund, she stated.

The government is providing a minimum pension of Rs 1,000 per month to pensioners under the EPS, 1995 through budgetary support, which is in addition to the budgetary support of 1.16 per cent of wages towards EPS to Employees’ Provident Fund Organization (EPFO), she told the House.

The fund is valued annually as mandated under paragraph 32 of EPS, 1995.

The objective of the valuation is to determine the long-term viability of the fund, given the expected stream of money inflows from contributions, etc, and the outflows in terms of benefits, the minister stated.