EPS-95 pension hike: Will ₹1,000 minimum pension increase to ₹7,500? Here’s what the government said in Lok Sabha

The demand to increase the minimum pension under the Employees’ Pension Scheme (EPS), 1995, from ₹1,000 to ₹7,500 has once again come into focus after the issue was raised in the Lok Sabha on 10 August. However, the government has not announced any increase in the minimum pension or indicated that the ₹7,500 demand has been approved.

The issue was raised by Lok Sabha MP Ramvir Singh Bidhuri, who asked whether the government plans to increase the minimum EPS-95 pension from ₹1,000 to ₹7,500 per month. He also sought details on pensioners covered under EPS-1995 and beneficiaries receiving higher pension following the Supreme Court's ruling on pension on higher wages.

In her response, Minister of State for Labour and Employment Shobha Karandlaje said the government is currently providing a minimum pension of ₹1,000 per month to EPS-1995 pensioners through budgetary support. The government did not announce a hike to ₹7,500 in its response.

The latest parliamentary development comes days after the EPS-95 National Agitation Committee staged a protest in New Delhi on 5 August, demanding that the minimum pension be raised to ₹7,500. The pensioners have argued that the existing ₹1,000 monthly pension is inadequate amid the rising cost of living.

Why has the government not announced a ₹7,500 EPS pension?

According to the government's response, the Employees’ Pension Fund corpus comprises an employer contribution of 8.33% of wages and a Central government contribution of 1.16% of wages, subject to the ₹15,000 monthly wage ceiling. The government said all benefits under the scheme are paid from these accumulations and that the fund is valued annually as mandated under EPS-1995.

The government is also providing the ₹1,000 minimum pension through additional budgetary support. This support is over and above the 1.16% contribution made by the Centre towards EPS, according to the Labour Ministry's response.

The government said it is committed to providing robust social security coverage to EPFO members while taking into account the sustainability of the pension fund and future liabilities. Its latest response, therefore, does not signal an immediate increase in the minimum EPS pension to ₹7,500.

For pensioners, the key takeaway is that ₹7,500 remains a demand and not the new minimum pension. The minimum EPS pension continues to be ₹1,000 per month for now.

85.85 lakh pensioners receive EPS pension

As of 31 March 2026, 85,84,604 pensioners were receiving monthly pensions under EPS, according to Karandlaje. The total pension amount disbursed under the scheme up to 31 March 2026 stood at ₹15,819.28 crore.

The government also provided an update on pension on higher wages. Under the ₹15,000 monthly wage ceiling, the maximum monthly EPS contribution works out to about ₹1,250, based on the 8.33% employer contribution.

The Supreme Court's 4 November 2022 judgment allowed eligible employees who had contributed on actual basic salaries above the wage ceiling to opt for pension on higher wages, subject to the applicable conditions. The EPFO subsequently issued directions allowing eligible employees and employers to submit joint options for higher pension.

According to Karandlaje's response, 1,49,806 Pension Payment Orders (PPOs) for pension on higher wages had been issued to retired applicants following the Supreme Court judgment.

Therefore, there is no confirmed ₹7,500 EPS pension hike yet. The latest government response keeps the existing ₹1,000 minimum pension in place while stressing the need to balance social security with the sustainability of the pension fund and its future liabilities.