EPS-95 pension hike: Will Centre raise minimum pension from ₹1,000 to ₹7,500?

The EPS-95 National Agitation Committee has long demanded an increase in the minimum monthly pension from ₹1,000 to ₹7,500, along with Dearness Allowance (DA). The issue was raised in the Lok Sabha, where the Minister of State for Labour and Employment was asked whether the government plans to increase the pension amount and provide greater financial support to elderly workers.

The minister acknowledged that although several stakeholders have requested a pension increase, no decision has been made on the matter yet.

Government reply on minimum pension hike

In a written reply to Lok Sabha on 20 July, Minister of State for Labour and Employment, Shobha Karandlaje, said: “Representations have been received from various stakeholders, including trade unions and public representatives, to increase the minimum pension under the Employees’ Pension Scheme (EPS), 1995, from the existing ₹1,000 per month.”

She did not confirm any move to raise the minimum pension to ₹7,500 per month.

Pension fund restructuring under consideration

The government was asked whether it is considering additional budgetary support or restructuring the pension fund to increase pension amounts.

Karandlaje explained that EPS, 1995, is a “Defined Contribution–Defined Benefit” social security scheme, where benefits are linked to contributions made and also provide defined payouts.

The corpus of the Employees’ Pension Fund is built through:

• Employer contribution: 8.33% of wages towards the pension fund.
• Central government contribution: 1.16% of wages through budgetary support, subject to a monthly salary ceiling of ₹15,000.

The minister said, “All benefits under the Scheme are paid out of such accumulations. The Fund is valued annually as mandated under paragraph 32 of the EPS, 1995.”

She also added that “EPS, 1995 has been superseded by EPS, 2026.”

Government provides ₹1,000 minimum pension through budget support

Karandlaje highlighted that the government is providing budgetary support to ensure the minimum pension of ₹1,000 per month for EPS-95 pensioners.

She said, “The government is providing a minimum pension of ₹1,000 per month to pensioners under EPS, 1995, through budgetary support.”

She clarified that this is separate from the annual1.16% wage contribution made by the government towards EPS, which is managed by the Employees’ Provident Fund Organisation (EPFO).

No timeline announced for pension increase

The government was also asked when it expects to take a final decision on the demand concerning lakhs of elderly pensioners.

The minister said the government remains committed to strengthening social security coverage for EPFO members; any decision will have to take into account the sustainability of the pension fund and future liabilities.

“The Government is committed to ensuring robust social security coverage to members of EPFO schemes while taking into consideration the sustainability of the Fund and the future liabilities thereon,” Karandlaje said.

Disclaimer: This is for informational purposes only. Please check the official websites for the latest updates.