Pension Review Urged: Panel Calls for Higher EPF Pension

Parliamentary Panel Urges Review of EPS-95 Pension, Seeks Increase Beyond Rs 1,000 Minimum​

Committee Flags Inadequacy of Current Pension Amid Rising Living Costs​

New Delhi, March 17: A parliamentary panel has called for an urgent and comprehensive review of the Rs 1,000 minimum monthly pension under the Employees' Pension Scheme, 1995, highlighting the need to raise it to a more realistic and dignified level.

The recommendation comes against the backdrop of persistent demands from pensioners seeking a minimum monthly pension of Rs 7,500, which they argue is still insufficient to meet basic living expenses.

Pensioners Stage Protest, Demand Higher Minimum Pension​

Pensioners under the Employees' Pension Scheme 1995, administered by the Employees' Provident Fund Organisation, staged a three-day protest at Jantar Mantar from March 9. The demonstration focused on pressing for an increase in the minimum pension to Rs 7,500 per month.

The Parliamentary Standing Committee on Labour, Textiles and Skill Development, in its 15th Report on Demands for Grants for 2026-27, noted that the current minimum pension has remained unchanged despite a steady rise in the cost of living.

Government Support Acknowledged, But Gaps Remain​

During its review, the Committee took note of the Ministry of Labour and Employment’s submission that the government is extending financial support to the scheme. This includes a 1.16 percent contribution for current EPFO members and budgetary provisions to maintain the Rs 1,000 minimum pension.

Despite these measures, the Committee observed that the existing pension level is inadequate, particularly given inflationary pressures and rising healthcare and household expenses.

Call for Higher Budgetary Support and Social Security Strengthening​

The panel has recommended that the Ministry explore increasing budgetary support to ensure pensioners receive a reasonable minimum pension aligned with present-day living costs. The move aims to enhance social security and financial stability for lakhs of retired workers covered under the scheme.

Broader Labour Reforms and Structural Recommendations​

While acknowledging the rollout of Labour Codes, the Committee has proposed the creation of a Permanent Coordination and Interaction Board with representatives from the Centre and States. This body would oversee the implementation of labour schemes and improve coordination.

The panel also raised concerns about contractual labourers who perform similar roles as regular workers but face delays in compensation after workplace accidents. It recommended timely inclusion of such workers under social security schemes like Employees' State Insurance and Provident Fund, along with mechanisms to ensure prompt compensation.

Focus on Gig Workers and Social Security Inclusion​

Highlighting the growing role of gig workers in urban supply chains, the Committee noted that many remain outside formal registration and social security frameworks. It has recommended mandatory registration of gig workers by aggregators on the e-Shram Portal, with at least one-year validity and continued access to benefits such as insurance and accident coverage.

The panel also urged the government to incorporate clear provisions for gig and platform workers within labour codes, defining aggregator responsibilities and ensuring their contribution to worker welfare.

Budgeting, Compliance, and Institutional Strengthening​

The Committee has called for a more realistic and evidence-based budgeting framework, along with periodic scheme-wise analysis of Budget Estimates, Revised Estimates, and actual expenditure to improve fiscal discipline.

It further recommended dedicated budget allocation for awareness, capacity building, and IT infrastructure to support Labour Code implementation, backed by clear annual action plans and measurable outcomes.

Strengthening Worker Safety and Regulatory Oversight​

To enhance worker safety, the Committee has urged faster filling of vacancies and adoption of modern inspection and monitoring technologies in the Directorate General of Mines Safety. It also called for the creation of a comprehensive database of registered and unregistered mines and strict action against illegal mining operations.

Push for Expanded ESI Coverage​

Finally, the Committee recommended expediting the revision of the wage ceiling under the Employees' State Insurance Corporation to expand coverage while maintaining the financial sustainability of the ESI Fund.