Parliamentary Panel Calls for Urgent Increase in Rs 1,000 EPS Pension Amid Rising Cost Pressures
A Parliamentary panel has called for an urgent review of the Rs 1,000 minimum monthly pension under the Employees’ Pension Scheme (EPS) of 1995, citing that the current amount fails to meet the basic needs of beneficiaries amid rising living costs. This recommendation comes as pensioners have been advocating for a substantial increase to Rs 7,500 per month. The panel’s report highlights the pressing financial hardships faced by elderly and economically vulnerable beneficiaries, especially following a recent protest at Jantar Mantar demanding the hike.
Concerns Over Insufficient Pension
The Parliamentary Standing Committee on Labour, Textiles and Skill Development has expressed serious concerns regarding the inadequacy of the current minimum pension. In its 15th report on the ‘Demands for Grants (2026-27)’ from the Ministry of Labour and Employment, the committee noted that the Rs 1,000 pension has not been revised for a significant period, despite the ongoing rise in inflation and healthcare costs. The committee received numerous representations from pensioners who are struggling to make ends meet, emphasizing the urgent need for an increase in the pension amount.
The report underscores that the existing pension is insufficient to cover even basic living expenses, prompting the committee to recommend an immediate review to adjust the pension to a more realistic and dignified level. This recommendation is particularly significant as it reflects the growing financial strain on retired workers who rely on this pension for their livelihood.
Government Support and Recommendations
The committee acknowledged the government’s efforts to support the EPS, including a contribution of 1.16 percent from currently serving EPFO members and budgetary allocations to maintain the minimum pension. However, the panel argued that these measures are inadequate given the current economic climate. It urged the Ministry of Labour and Employment to explore options for increasing budgetary support to ensure that the minimum pension aligns with contemporary living costs.
By enhancing the pension amount, the committee believes that social security and financial stability for millions of retired workers can be significantly improved. This recommendation aims to provide a safety net for those who have dedicated their lives to the workforce and now face economic challenges in their retirement years.
Broader Labour Reforms and Worker Protections
In addition to pension reforms, the committee welcomed the implementation of the Labour Codes and proposed the establishment of a Permanent Co-ordination and Interaction Board. This board would consist of representatives from both the Centre and states to oversee the rollout of various labour schemes. The committee also raised concerns about delays in providing relief and compensation to contractual labourers following workplace accidents, urging for their timely inclusion in social security schemes like the Employees’ State Insurance and Provident Fund.
Furthermore, the committee highlighted the increasing role of gig workers in urban supply chains. It recommended that aggregators be mandated to register these workers on the e-Shram portal, ensuring they continue to have access to essential benefits such as insurance and accident coverage. These measures aim to enhance protections for all workers, particularly those in vulnerable employment situations.
Call for Evidence-Based Budgeting and Safety Measures
The committee emphasized the need for realistic, evidence-based budgeting by the Ministry of Labour and Employment. It called for systematic provisions for awareness and IT infrastructure under the Labour Codes, as well as expedited filling of vacancies in the Directorate General of Mines Safety (DGMS). Additionally, the committee urged stricter actions against illegal mining practices to safeguard worker safety.
Lastly, the committee recommended a prompt revision of the wage ceiling under the Employees’ State Insurance Corporation to expand coverage while ensuring the financial sustainability of the ESI fund. These recommendations reflect a comprehensive approach to improving the welfare of workers and ensuring that their rights and needs are adequately addressed in the evolving economic landscape.
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