Parliament panel demands EPS pension raise to ‘dignified level’, says Rs 1,000 is 'inadequate'

New Delhi: Parliamentary panel on Tuesday recommended an urgent, comprehensive review of the Rs 1,000 minimum monthly pension under the Employees’ Pension Scheme, 1995, to raise it to a more realistic and dignified level.

This assumes significance in view of pensioners' demand to raise the pension to Rs 7,500 per month, as Rs 1,000 is not sufficient to make both ends meet.

Pensioners under the Employees' Pension Scheme 1995 (EPS-95) run by the retirement fund body EPFO had also staged a three-day protest at Jantar Mantar from March 9, for increasing the minimum monthly pension to Rs 7,500.

The Parliamentary Standing Committee on Labour, Textiles and Skill Development, in its 15th Report on 'Demands for Grants (2026-27)' of the Ministry of Labour and Employment, noted that the minimum pension of Rs 1,000 per month under the Employees' Pension Scheme, 1995, has remained unchanged for a considerable period of time despite the rising cost of living.

During the course of evidence, the committee observed that numerous representations have been received from pensioners seeking an upward revision of the minimum pension, particularly considering the financial hardships faced by elderly and economically vulnerable beneficiaries.

The Committee further take note of the submission of the Ministry of Labour and Employment that the Government of India is already extending financial support towards the Scheme, including the contribution of 1.16 per cent for currently serving members of the Employees' Provident Fund Organisation and the budgetary support provided for ensuring the minimum pension of Rs. 1,000 per month.

However, the Committee stated that it is of the considered view that the existing minimum pension amount is inadequate to meet even the basic needs of pensioners, particularly in the present economic scenario marked by inflation and rising health care and living expenses.

The Committee, therefore, recommend that the Ministry undertake an urgent and comprehensive review of the minimum pension under the Employees’ Pension Scheme, 1995, with a view to enhancing it to a more realistic and dignified level.

The Committee further recommend that the Ministry explore the possibility of increasing budgetary support to the Scheme, so as to ensure that pensioners receive a reasonable minimum pension commensurate with present-day living costs, thereby providing greater social security and financial stability to lakhs of retired workers covered under the Scheme.

While appreciating and welcoming the implementation of the Labour Codes, the Committee have recommended the constitution of a Permanent Co-ordination and Interaction Board consisting of representatives of both Centre and States on priority.

The Board should also look into the implementation of various schemes of the Ministry.

While observing that many contractual labourers perform duties similar to regular workers but often face delays in receiving relief and compensation after workplace accidents, the Committee have recommended that timely coverage of such workers under social security schemes like Employees’ State Insurance (ESI) and Employees’ Provident Fund (PF) be ensured..

The Committee have also urged the Union and State Governments to establish mechanisms to monitor compliance and ensure prompt disbursement of compensation.

While noting that gig workers play a vital role in urban supply chains but many remain outside formal labour registration and social security frameworks, the Committee have recommended that registration of gig workers by aggregators on the e-Shram Portal, with registration valid for at least one year and continued access to social security benefits such as insurance and accident coverage be made mandatory.

The Committee have also urged the Government to include specific provisions for gig and platform workers in labour codes, clearly defining aggregator responsibilities and ensuring their contribution to workers’ social security and welfare.

Taking into account implementation readiness, approval timelines, and past expenditure trends, the Committee have recommended that the Ministry of Labour and Employment evolve a more realistic and evidence-based budgeting framework and furnish periodic scheme-wise analysis of BE, RE and Actual Expenditure to improve fiscal discipline.

The Committee have recommended that expenditure relating to awareness, capacity building and IT infrastructure for the implementation of the Labour Codes be systematically provided for in the Budget Estimates itself, along with clear annual action plans and measurable outreach outcomes.

The Committee have urged the Ministry to ensure expeditious filling of vacancies and adoption of modern mining, inspection/monitoring technologies in DGMS, particularly in view of expanded responsibilities under the Occupational Safety, Health and Working Conditions Code 2020.

The Committee have recommended that the Ministry of Labour and Employment, in coordination with the Ministry of Mines and State Governments, prepare a comprehensive database of registered and unregistered mines and take stringent action against illegal mining operations to safeguard mine workers’ safety and welfare.

The Committee have recommended that the Ministry adopt an outcome-based framework for international cooperation activities, including preparation of an annual calendar of engagements and realistic expenditure planning.

The Committee have recommended that the Ministry expedite the revision of the wage ceiling under the Employees’ State Insurance Corporation (ESIC) to expand social security coverage to a larger segment of workers, while ensuring actuarial soundness and financial sustainability of the ESI Fund.