A parliamentary panel on Tuesday (March 17, 2026) recommended an urgent and comprehensive revision of the minimum monthly pension of ₹1,000 under the 1995 Employee Pension Scheme to raise it to a more realistic and dignified level.
This has significance in view of the pensioners’ demand to increase the pension to ₹ 7,500 per month, as ₹ 1,000 is not enough to satisfy both the objectives.
Pensioners under the Employees’ Pension Scheme 1995 (EPS-95) run by the pension fund body EPFO also staged a three-day protest at Jantar Mantar from 9 March to raise the minimum monthly pension to ₹7,500.
The Parliamentary Standing Committee on Labour, Textiles and Skill Development, in its 15th report to the Ministry of Labor and Employment on “Demands for Grants (2026–27)”, noted that the minimum pension of ₹1,000 per month under the 1995 occupational pension scheme remained unchanged for a considerable period of rising cost of living.
During the course of evidence, the committee noted that a number of objections were received from pensioners demanding an upward revision of the minimum pension, particularly in view of the financial difficulties faced by elderly and economically vulnerable beneficiaries.
The Committee further notes the communication from the Ministry of Labor and Employment that the Government of India is already extending financial support to the scheme, including a contribution of 1.16 per cent for currently serving members of the Employees’ Provident Fund organization and budget support provided to ensure a minimum pension of Rs. 1000 per month.
However, the committee noted that it believes that the current minimum pension amount is insufficient to cover even the basic needs of retirees, especially in the current economic scenario marked by inflation and rising health care and living costs.
The Committee therefore recommends the Ministry to carry out an urgent and comprehensive review of the minimum pension under the 1995 occupational pension scheme with a view to increasing it to a more realistic and dignified level.
The Committee further recommends that the Department explore the possibility of increasing the budgetary support of the scheme to ensure that retirees receive an adequate minimum pension commensurate with the current cost of living, thereby ensuring greater social security and financial stability for the thousands of retired workers covered by the scheme.
The Committee appreciates and welcomes the implementation of the Labor Codes and has recommended the establishment of a Standing Council for Coordination and Interaction consisting of priority representatives from both the Center and the States.
The Council should also deal with the implementation of various programs of the Ministry.
Bearing in mind that many contract workers perform duties similar to regular workers but often face delays in receiving assistance and compensation following work-related injuries, the Committee recommended that timely coverage of such workers be ensured under social security schemes such as Employees’ State Insurance (ESI) and Employees’ Pension Fund (PF).
The committee also urged the Union and state governments to set up mechanisms to monitor compliance and ensure prompt payment of compensation.
While noting that gig workers play a vital role in urban supply chains but many remain outside the scope of formal labor and social security registration, the committee recommended that registration of gig workers through aggregators on the e-Shram portal with registration valid for at least one year and permanent access to social security benefits such as insurance and accident insurance be made mandatory.
The committee also urged the government to include specific provisions for gig and platform workers in labor codes, clearly define the responsibilities of aggregators and ensure their contribution to social security and workers’ welfare.
Taking into account implementation readiness, approval schedules and past spending trends, the committee recommended that the Ministry of Labor and Employment develop a more realistic evidence-based budget framework and provide regular systematic analysis of BE, RE and actual spending to improve fiscal discipline.
The Committee recommended that expenditure related to awareness, capacity building and IT infrastructure for the implementation of labor codes should be systematically considered in the budget estimate itself, together with clear annual action plans and measurable outputs.
The Committee urged the Department to ensure expeditious filling of vacancies and adoption of modern mining, inspection/monitoring technologies in the DGMS, especially in view of the expanded responsibilities under the Safety, Health and Working Conditions Code 2020.
The Committee recommended the Ministry of Labor and Employment to prepare a comprehensive database of registered and unregistered mines in coordination with the Ministry of Mines and State Governments and take strict action against illegal mining operations to ensure the safety and welfare of mine workers.
The Committee recommended that the Ministry adopt a results-based framework for international cooperation activities, including the preparation of an annual commitment calendar and realistic expenditure planning.
The Committee recommended that the Ministry accelerate the revision of the wage ceiling within the Employees State Insurance Company (ESIC) with the aim of extending social security to a larger segment of workers while ensuring the actuarial reliability and financial sustainability of the ESI Fund.
Published – 17 March 2026 16:20 IST
