Top News

For several months, speculation has been circulating that the government may increase the Employees’ Pension Scheme (EPS-95) minimum pension from the current ₹1,000 to ₹7,500 per month. The discussion gained attention after media reports in October 2025 suggested that the proposal might be reviewed during the Central Board of Trustees (CBT) meeting of the Employees’ Provident Fund Organisation (EPFO). However, no official confirmation followed at that time.

Now, once again, the long-standing demand for increasing EPS-95 minimum pension reached Parliament during the Winter Session. On December 1, 2025, the government was directly asked whether there is any plan to enhance the minimum pension under EPS from ₹1,000 to ₹7,500. This demand is being raised by lakhs of pensioners across the country for many years.

What Question Was Raised in Parliament?

Member of Parliament Balya Mama Suresh Gopinath Mhahatre raised six key questions regarding EPS-95. These included:

• Whether the government plans to increase the minimum pension

• Why the pension amount has not been revised despite multiple appeals

• Why Dearness Allowance (DA) is not provided to EPS pensioners

• Whether the government has studied the demands of pensioners

• And whether any steps are being taken to make the scheme livable and fair

How EPS-95 Functions

EPS-95 is India’s largest pension system, covering more than 80 lakh pensioners. The scheme receives funds from two main contributions:

• 8.33% of the employee’s salary contributed by the employer

• 1.16% contribution from the Central Government (up to a salary limit of ₹15,000)

The current minimum pension of ₹1,000 per month has been in effect since 2014. Considering today’s rising inflation, pensioners say the amount is extremely inadequate for basic living expenses.

What Are the Key Demands of EPS-95 Pensioners?

Over the last decade, pensioners have repeatedly held protests and filed petitions demanding improvements in the scheme. Their major demands include:

• Increase in minimum pension to ₹7,500–₹9,000 per month

• Implementation of regular Dearness Allowance

• Restoration of higher pension benefits

• Reforms to ensure pension supports a basic standard of living

What Did the Government Say?

Responding to the questions, Minister of State for Labour & Employment Shobha Karandlaje stated that there is currently no proposal to increase the pension amount.

The primary reason given is the financial state of the EPS fund. The latest actuarial valuation report from 2019 showed a deficit, meaning the fund does not currently have sufficient resources to meet future liabilities. Increasing pension at the moment could worsen the financial strain.

How Is the Minimum Pension Paid Now?

The central government provides budgetary support to ensure payment of the ₹1,000 minimum pension and continues its 1.16% contribution. However, the minister clarified that there are no current plans to increase pension or provide DA.

Why Is DA Not Provided?

According to the government, EPS-95 is a Defined Contribution Scheme, unlike the Defined Benefit salary-linked pension scheme applicable to government employees. Since contribution determines the benefit amount, DA has no role in the EPS structure. As a result, EPS pensioners do not receive DA increments even as inflation continues to rise.

Challenges Faced by EPS-95 Pensioners

Most EPS-95 beneficiaries previously worked in private or low-paid sectors. Their pension is the only source of income after retirement. With medical costs, essential expenses and inflation rising sharply, pensioners say the ₹1,000 monthly pension is insufficient for survival. Meanwhile, government employees receive DA and regular salary revisions, highlighting a widening gap.

Will the Pension Increase in the Future?

Experts believe that pension enhancement may only be possible if major structural reforms are introduced, such as:

• Raising employer contribution rates

• Additional financial support from the government

• Overhauling the existing funding model

Without these changes, increasing the minimum pension seems difficult in the near future.

Conclusion

While there is widespread expectation among pensioners for an increase to ₹7,500 or more, the government has clarified that no such proposal is under consideration at present. For now, pensioners will continue receiving the existing ₹1,000 monthly pension until the financial issues of the EPS fund are resolved.