In what could come as a reason to cheer for EPS subscribers, the standing committee on labour has put forth a suggestion that the labour ministry talk and convince the finance ministry to hike the Rs 1,000 minimum pension to Rs 2,000 per month under the Employees’ Pension Scheme, 1995.

The committee stated that the present minimum pension looks insufficient. It further recommended that the Employees Provident Fund Organisation (EPFO) take up an actuarial assessment of all its pension schemes so that the monthly member pension is translated to a reasonable number.

The Centre’s contribution to Rs 1,000 crore every year to EPFO towards the monthly minimum pension of Rs 1,000 stands at Rs 750 crore. Nearly 3.2 million pensioners benefit from the minimum pension scheme.

“In view of the fact that Rs 1,000 per month pension which was fixed 8 years back appears to be grossly inadequate now, it becomes imperative on the part of the ministry of labour and employment to pursue the matter with the ministry of finance for obtaining adequate budgetary support as recommended by the high-empowered monitoring committee,” Bhatruhari Mahtab, chairperson of the standing committee on labour, said in its report tabled in Parliament on Tuesday.

The report stated that EPFO also needs to make an actuarial assessment of all its pension schemes so that the monthly member pension is enhanced to a reasonable extent.

Earlier in 2018, the labour ministry had formed a high-level monitoring committee for the overall evaluation and review of the Employees Pension Scheme, 1995. In its report, the committee had suggested to raise the minimum monthly pension payable to the pensioner to at least Rs 2,000 per month.

The ministry of finance, however, has not given a nod to any such enhancement in minimum pension beyond Rs 1,000 per month, the report added.