The Employees’ Pension Scheme, 1995 (EPS-95) under EPFO aims to secure retirement income for eligible employees. Currently, under this scheme, minimum pensioners are paid a sum of ₹1,000 per month from the government and the EPFO. However, inflation and rising costs of living have made this minimum pension inadequate even for the very basic of expenses. Hence, the pensioners as well as the unions have been demanding an increase.
Demand For Minimum Pension Increase
- There have been pressures from various quarters — trade unions, pensioner associations, and parliamentarians — upon the government to increase the minimum pension under EPS-95 from ₹1,000 to a higher amount.
- According to reports, a parliamentary committee has suggested a third-party evaluation of the EPS scheme to be done by the end of 2025, to assess the feasibility and propose appropriate minimum pension levels.
- There are talks of raising the minimum pension after consultations with actuaries especially since a large number of pensioners entirely depend on it.
What Has The Government Done?
- On record, the government states that it has received representations for a pension hike.
- A press note affirms that a minimum pension of ₹ 1,000 per month under EPS-95 exists and that its enhancement is under consideration.
- The EPFO and the Labour Ministry are studying the financial health of the scheme. Reference is made to a deficit in actuary terms plaguing the fund.
What Pensioners Wish To See In 2025
- A truly substantial increase in the minimum pension-however, various demands have appeared in the media and association circles, ranging to ₹7,500 per month or above, so as to ensure some measure of dignity in the incomes of retired citizens.
- Incorporation of Dearness Allowance (DA) into the pensions, which would act as an inflationary mechanism-so that upward revision in pension amounts would follow inflation and preserve the purchasing power.
- Definite commitment or clear timelines from the government for the initiation of proposals.
Challenges and Possible Delays In Further Hike
- Financial and actuarial sustainability: The EPFO has to ensure that the hike in the minimum pension level does not threaten the stability of the fund; there are already deficits.
- Government budget constraints: It is imperative that budgetary support be sought for enhanced pensionary payments. Allocations would have to be made in subsequent budgets.
- Administrative delays: Time is taken to obtain system updates, approval of proposals, and ensuring proper disbursement. Some of the past proposals for increased pension have been delayed or sent back for further verification.
Also Read: Big EPFO Rule Change 2025: Pension Benefits With Just 1 Month Of Work