The Employees’ Provident Fund Organisation (EPFO) has been under scrutiny lately, with concerns surrounding the minimum monthly pension of ₹1,000 for member-pensioners. This amount, fixed in August 2014, has remained unchanged for over a decade, sparking calls for revision. The Standing Committee of Parliamentarians on Labour, Textiles and Skill Development has reiterated the urgent need to increase the minimum monthly pension, citing the government’s allocation of ₹980 crore annually as insufficient ¹.
The Bharatiya Janata Party (BJP)-led government has been criticized for taking credit for the pension hike in 2014, which was actually implemented by the previous Congress-led United Progressive Alliance (UPA) regime. The BJP had initially criticized the ₹1,000 minimum pension as insufficient, with senior leader Prakash Javadekar demanding a hike to at least ₹3,000.
To make matters worse, the EPFO’s handling of applications from those opting for pensions based on higher wages has been marred by a lack of transparency. Many applicants have received demand notices requiring contributions amounting to several lakhs of rupees, without being informed of their entitled pension amounts and arrears. The EPFO’s reliance on a portal-based calculator, which comes with a disclaimer and no assurance of accuracy, has only added to the confusion.
The situation is particularly dire for member-pensioners from exempted establishments, where authorities have summarily rejected applications for higher pension and even stopped previously sanctioned higher pensions without proper explanation.
The Way Forward
To address these concerns, the Union government must initiate comprehensive stakeholder consultations to increase the monthly pension and ensure the fair treatment of all member-pensioners. This includes:
– Revising the minimum monthly pension: The government must consider increasing the minimum monthly pension to a more realistic amount, taking into account the rising cost of living.
– Improving transparency: The EPFO must provide clear and timely communication to applicants, ensuring they are informed of their entitled pension amounts and arrears.
– Simplifying the pension calculation process: The EPFO’s reliance on a portal-based calculator must be replaced with a more transparent and accurate system.
– Ensuring fairness: The government must ensure that all member-pensioners, including those from exempted establishments, are treated fairly and without discrimination.
By taking these steps, the government can address the pension woes of EPFO member-pensioners and ensure a more secure and dignified retirement for millions of Indians.
