EPFO to Double the Minimum Pension Amount for Senior Citizens

There is a moment to rejoice for the pensioners, as the retirement fund body EPFO is soon going to double the pension of the organized sector employee.

While the earlier minimum pension was restricted to Rs 1000 has now it has been planned to Rs 2000. The decision could be soon taken by the central board of trustees meeting on June 26, 2018.

Biggest question which arises is how many people will benefit under this scheme? The move will benefit at least 40 lakh subscribers and the cost that the center would incur will be Rs 3,000-4,000 crore per annum.

Rationale Behind EPFO Consideration

Owing to the high-spiraled inflation, the government has been put under the scanner by the retired employees to increase the pension amount; hence this decision has been taken. Though a formal approval has not been granted but the government is expected to soon stamp the proposal.

Modi Government has focussed a lot on social security of the employees. Starting from widening the equity- linked schemes to maximize the returns, increasing death linked insurance compensation amount to doubling the pension amount to streamlining its cost to digitizing its portal via Umang app; it seems EPFO is doing everything to simplify the process of pension generation, isn’t?