New Delhi: A Parliamentary panel on Tuesday asked the government to peg the minimum pension at Rs 3,000 a month under the Employees Pension Scheme 1995 (EPS-95) run by retirement fund manager EPFO to help retired workers tide over rising prices.
"EPS is the only financial assurance to retired workers and their families, specially low and medium wage earners, and failure to strengthen the scheme has undone the very reason for instituting it," the Committee on Petitions said in its report, which was tabled in the Rajya Sabha today by its chairman Bhagat Singh Koshyari.
The committee suggested the government should increase its contribution to the scheme from the existing 1.16 per cent of basic wages (basic pay + dearness allowance) to 8.33 per cent to ensure a minimum monthly pension of Rs 3,000.
According to the committee, more than 30 lakh employees (pensioners under the scheme) get less than Rs 1,000 a month, of which more than 25 lakh get less than Rs 500 per month.
As of now, 55 million employees contribute 8.33 per cent of their basic wages while the government contributes 1.16 per cent toward EPS-95, making a "mockery" of the pension scheme.
The result of such a negligible government contribution is an injustice for the workers. Given the recent price rise, workers should be able to maintain their standard of living after superannuation, it added.