Post-EPS, Time for Major Reforms in Private Sector Employees' Pension

 

UV INDIA NEWS: After the central government's Employees' Pension Scheme (EPS) applied to more than 90 lakh employees of 23 central public sector enterprises (CPSEs), there is a growing demand for similar benefits for the private sector. Around 78 lakh pensioners from organised private sectors receive just ₹1,000 as a minimum monthly pension. There is a strong call for this amount to be raised to at least ₹10,000.

Supreme Court's Order and the Need for Reform:

• The Supreme Court had ordered that private sector employees' pensions be recalculated, considering 30 months of their final salary, which would significantly raise their pension amounts. However, no substantial changes have been implemented yet.
• Various employee unions and organisations are advocating for the government to review and increase the minimum pension amount for private sector employees, which aligns with the recent changes for CPSEs.

Financial Implications:

• The report mentions that if the government sets a minimum pension of ₹3,000 per month, the annual financial burden would increase by ₹5,500 crores. If the amount is increased to ₹6,500, this figure would rise to ₹18,500 crores annually.
• Over the past six years, the government has received over 1.31 crore applications related to EPS, underscoring the urgency and scale of the issue.

Call for Equal Treatment:

• Amarjeet Kaur, General Secretary of the Indian National Trade Union Congress, stressed that private sector employees should receive the same pension benefits as government employees.
• She urged the government to consider providing pension benefits to private sector employees, similar to those given to government workers, which include raising the minimum pension to ₹7,500 and adding dearness allowance.

The article emphasises the pressing need for the government to reform pension schemes for private sector employees, ensuring equitable benefits and financial security for millions of pensioners who have served in various industries. The growing momentum for reforms highlights the importance of addressing these disparities to provide fair retirement benefits for all workers.