EPFO key decisions awaited in 2025 | Fusion - WeRIndia

The long-standing demand for an increase in the minimum pension under the Employees’ Provident Fund Organisation (EPFO) has gained momentum ahead of Budget 2025.

Currently, private-sector pensioners receive a minimum pension of ₹1,000 per month, a figure last revised in 2014.

With inflation and rising medical costs, pensioners have been urging the government to raise this amount to ₹7,500 per month. In addition, they are also requesting dearness allowance (DA) benefits.

The EPS-95 National Agitation Committee, which represents over 78 lakh pensioners, has been actively pushing for pension reforms.

The government responded positively to the demands of pensioners. Recent discussions with Union Labour Minister Mansukh Mandaviya and Finance Minister Nirmala Sitharaman have provided fresh hope.

The government has assured sympathetic consideration of their demands, including:

• Raising the minimum pension from ₹1,000 to ₹7,500
• Adding DA benefits to pension amounts
• Providing free medical facilities for pensioners and their spouses
• Rectifying errors in applications for higher pension benefits

The upcoming Central Board of Trustees (CBT) meeting on February 28, 2025, will be crucial in addressing these demands.

The CBT of EPFO, led by the Union Labour Minister, is set to take major decisions regarding:

• Interest Rate on EPF Deposits: For 2024-25, EPFO is likely to set the interest rate between 8% and 8.25%, slightly higher than the 8.25% for 2023-24.
• Pension Increase Proposal: The pension hike demand is expected to be a key agenda item.
• Interest Stabilization Fund: The government is considering an ‘Interest Stabilization Reserve Fund’ to ensure stable returns for EPFO members, regardless of market fluctuations.

The demand for higher pension is gaining public and political attention, with increasing pressure on the government to act.

If approved, these changes could significantly impact the financial security of retired private-sector employees.

As the CBT meeting approaches, pensioners are hopeful for a long-awaited revision in their benefits.

Image Credit: Aviator423, CC BY-SA 4.0, via Wikimedia Commons

Image Reference: https://commons.wikimedia.org/wiki/File:Employees%27_Provident_Fund_Organization_office_at_Silva_Cross_Road_at_Falnir_in_Mangalore.jpg