Congress Demands Urgent Review of Minimum Pension Amid Rising Inflation

Congress Criticizes Government Over Pension Scheme

New Delhi: On Wednesday, the Congress party launched a strong critique against the government following a Parliamentary panel's call for an immediate reassessment of the Rs 1,000 minimum monthly pension under the Employees' Pension Scheme of 1995. They urged the government to take decisive action to address this issue.

Jairam Ramesh, the Congress general secretary responsible for communications, accused the Modi administration of systematically weakening various social security initiatives over its nearly 12-year rule.

He emphasized that the pension amount has not seen any significant change for an extended period, despite the escalating inflation rates, which he highlighted in a post written in Hindi.

This stagnation has severely affected elderly individuals and economically disadvantaged pensioners, who are among the most vulnerable groups in society. Ramesh pointed out that with inflation soaring due to ineffective government policies, the current pension of Rs 1,000 is essentially inadequate, rendering it almost laughable.

He referenced the Parliament's Standing Committee, which has explicitly stated in its report that the Rs 1,000 monthly pension is grossly insufficient in today's economic climate.

The committee has suggested that the minimum pension be raised to a level that ensures a decent standard of living, Ramesh noted.

This matter is crucial for the social security and dignified existence of millions of retired workers. Ramesh expressed hope that the government would respond proactively following the Standing Committee's report, which was chaired by a BJP Lok Sabha MP.

The Parliamentary Standing Committee on Labour, Textiles, and Skill Development, in its 15th report regarding the 'Demands for Grants (2026-27)' from the Ministry of Labour and Employment, has called for a thorough review of the Rs 1,000 minimum pension under the Employees' Pension Scheme, 1995, advocating for an increase to a more realistic and dignified amount.

This recommendation is particularly significant as pensioners have been demanding an increase to Rs 7,500 per month, arguing that Rs 1,000 is insufficient for basic living expenses.

Pensioners under the Employees' Pension Scheme 1995 (EPS-95), managed by the EPFO, had previously organized a three-day protest at Jantar Mantar starting March 9, advocating for the minimum monthly pension to be raised to Rs 7,500.

The committee acknowledged that the Rs 1,000 monthly pension has not been adjusted for a considerable time, despite the rising cost of living.

During their hearings, the committee received numerous requests from pensioners urging for an increase in the minimum pension, especially in light of the financial difficulties faced by elderly and economically vulnerable individuals.

The committee also noted the Ministry of Labour and Employment's statement that the Government of India is providing financial support for the scheme, including a contribution of 1.16 percent for current members of the Employees' Provident Fund Organisation and budgetary support to maintain the minimum pension of Rs. 1,000 per month.

Nevertheless, the committee concluded that the current minimum pension is insufficient to cover even the basic needs of pensioners, particularly in the current economic environment characterized by inflation and rising healthcare and living costs.

Thus, the committee has recommended that the ministry conduct an urgent and comprehensive review of the minimum pension under the Employees' Pension Scheme, 1995, with the aim of increasing it to a more realistic and dignified level.