Thiruvananthapuram: Despite the high demand for an increase in social security pensions (welfare pensions), the Kerala government has decided to retain the monthly pension at Rs 1,600. Beneficiaries of the welfare pension scheme had expected the government to hike the pension amount to Rs 2,000 in the annual budget. However, Finance Minister KN Balagopal, in his budget speech, declared that the amount would not be increased, but the arrears would be settled soon.

“The remaining three instalments of Social Security Pension arrears will be disbursed in 2025-26,” Balagopal said.

The Finance Minister also stated that Kerala provides the largest Social Security Pension in India, spending over Rs 11,000 crore annually. Around 60 lakh beneficiaries receive Rs 1,600 per month under this scheme. The state has already disbursed Rs 33,210.68 crore, with the Centre contributing only 2% of the total requirement.

There are five types of social welfare pensions in Kerala: Indira Gandhi National Old Age Pension, Indira Gandhi National Widow Pension, Indira Gandhi National Disability Pension, Pension for Unmarried Women above 50 years, and Agriculture Labour Pension. In addition to these, there are 16 welfare board pensions.

The Centre provides financial support for only three of these: the National Old Age Pension, the National Widow Pension, and the National Disability Pension.

For instance, Kerala pays Rs 1,600 as an old age pension until the age of 79, of which the Centre's share is Rs 200. For pensioners above 80, the Centre's share is Rs 500. For handicapped and widow pensioners, the Centre contributes Rs 300 out of the total Rs 1,600.

Moreover, the Finance Minister's office states that the Centre has not been paying its share of the welfare pension since November 2023. Since then, the unpaid amount has grown to Rs 419 crore. For more than a year, Kerala has been covering the Centre's share from its own funds.