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GOVERNMENT OF INDIA
MINISTRY OF LABOUR AND EMPLOYMENT
LOK SABHA
UNSTARRED QUESTION NO. 5914
TO BE ANSWERED ON 30.03.2026
ENHANCEMENT OF PENSION UNDER EPS-95
†5914. SHRI RUDRA NARAYAN PANY:
Will the Minister of LABOUR AND EMPLOYMENT be pleased to
state:
(a) whether the pension amount given under Employees Pension
Scheme (EPS), 1995 is very negligible;
(b) if so, the details thereof; and
(c) whether the Government proposes to increase the said amount
and if so, the details thereof?
ANSWER
MINISTER OF STATE FOR LABOUR AND EMPLOYMENT
(SUSHRI SHOBHA KARANDLAJE)
(a) to (c): The EPS, 1995 is a “Defined Contribution-Defined Benefit”
Social Security Scheme. The corpus of the Employees’ Pension Fund
is made up 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. All benefits under the scheme are paid out of
such accumulations.
The amount of monthly pension is calculated in accordance with the
following factors:
Pensionable Service X Pensionable Salary
Monthly Pension = -----------------------------------------------
70
The fund is valued annually as mandated under paragraph 32 of the
EPS, 1995.
The Government is also providing a minimum pension of
Rs. 1000 per month to the pensioners under the EPS, 1995 through
budgetary support, which is in addition to the budgetary support of
1.16 per cent of wages provided annually towards EPS to Employees’
Provident Fund Organisation (EPFO).
The Government of India is committed to ensure maximum benefits
for workers under the EPS-95 scheme, duly taking into consideration
the health of the Fund as well as the future liabilities thereon.
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