STANDING COMMITTEE ON LABOUR : Lok Sabha MINISTRY OF LABOUR AND EMPLOYMENT DEMANDS FOR GRANTS (EPS95)
STANDING COMMITTEE ON LABOUR, TEXTILES AND SKILL DEVELOPMENT
(2021-22)
(SEVENTEENTH LOK SABHA)
MINISTRY OF LABOUR AND EMPLOYMENT
DEMANDS FOR GRANTS (2022-23)
THIRTIETH REPORT
LOK SABHA SECRETARIAT NEW DELHI
March, 2022/Phalguna, 1943 (Saka)
THIRTIETH REPORT
Relevant Extracts from the Report
123. There was a proposal to enhance the minimum pension of Rs. 1,000 per month to Rs. 2,000/3,000
per month under EPS, 1995. However, additional allocations on this count have not been proposed in
BE 2022-23. When enquired about the present status in this regard, the Ministry replied as under: -
“The Employees’ Pension Scheme (EPS), 1995 is a ‘Defined Contribution Defined Benefit’ Social
Security Scheme. There is a pooled account for providing pension under EPS consisting 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.
Amount of member’s pension under the Scheme is determined taking into account the pensionable
period of service and pensionable salary as per following formula:
Pensionable Service X Pensionable Salary
70
It is evident that the amount of pension is based on a predefined formula. However, the Government,
for the first time, provided a minimum pension of Rs. 1000 per month to the pensioners under EPS,
1995 from 01.09.2014 by providing additional budgetary support wherever the pension was falling
short as per above determined formula.
Representations have been received from individual pensioners as well as pensioners associations to
increase the minimum pension under the Employees’ Pension Scheme (EPS), 1995.
Therefore, Ministry
constituted a High-Empowered Monitoring Committee for complete evaluation and review of the
Employees’ Pension Scheme, 1995 on 04.01.2018. The Committee had submitted its report on
21.12.2018 to the Government. The Committee had, inter-alia, recommended that minimum monthly
member pension payable to the member /widow/ widower pensioners may be raised to at least
Rs.2000 per month, provided the Central Government budgetary support is provided for the same on
yearly basis.
