(ET)
The government may soon double minimum monthly payments under the Employees’ Pension Scheme (EPS) of the Employees’ Provident Fund Organisation (EPFO) to Rs 2,000 to strengthen the social security net for pensioners, a senior government official told. Such a move, about a year ahead of the next general election, would benefit at least 4 million people and cost the Centre a minimum Rs 3,000 crore annually if implemented, the person said.
The Cabinet had in 2014 approved a minimum monthly pension of Rs 1,000 for a year under EPS and then extended it in perpetuity the following year. The differential cost of Rs 813 crore per year to pay the minimum pension is borne by the Centre and this could more than double if the amount is increased twofold for all subscribers currently getting less than Rs 2,000 a month, said the official cited above.
