Minimum Pension – Ministry of Labour & Employment
The Government has notified a minimum pension of Rs. 1000/- per month to
the pensioners under Employees’ Pension Scheme (EPS), 1995 vide
Notification No. G.S.R. 593 (E), dated 19th August, 2014 effective from
01.09.2014 for the year 2014-15 which is continued beyond March, 2015
without any break.
However, no proposal is under consideration of the Government at present
for providing inflation-linked Dearness Allowance (DA) to pensioners of
EPS, 1995. The issue of index-linking of pension by fully neutralizing
inflation was considered by the Expert Committee constituted by the
Government in the year 2009 for review of EPS, 1995 and the same was
found not feasible in the case of a funded scheme like EPS, 1995 wherein
the contribution of the employer and Government is at a fixed rate of
8.33 per cent and 1.16 per cent respectively. Therefore, the value of
benefits cannot be left open-ended by linking it with inflation which is
variable.
This information given by Shri Bandaru Dattatreya, the Minister of State
(IC) for Labour and Employment, in reply to a question in Rajya Sabha
today.
Source : PIB
