The Employees Pension Scheme of 1995 (EPS 95) has been in high demand during the 2025 year, especially among pensioners and long-term contributors. Offered by the Employees’ Provident Fund Organisation (EPFO), this scheme provides a monthly pension to retired employees. Several proposed reforms lately have awakened the hope that most of these would really relieve the pensioners. Below are the most recent significant developments under EPS 95, who benefits, and what steps need to be taken to avail of these.
Key Proposals And Reforms
- Minimum Pension Raise Proposal
The Government of India is seriously discussing the increases of minimum EPS pension from ₹1,000/- per month to ₹7,500/- per month. If accepted, this hike would come into effect from May 2025 and would benefit more than 60 lakh pensioners whose pensions have not been able to keep pace with inflation and the rising cost of living. - The Changes to Pension Calculation Method Under the proposed reforms, the pension would be calculated on the basis of average salary of five years instead of just the salary of the last year of service. Those who have more than 20 years of service might be granted a bonus of two additional years of service, which will significantly increase pension distributable.
- Mandatory Updates for Pensioners To ensure timely credits, EPFO is requiring all EPS pensioners to keep their documents up to date. This includes linking Aadhaar to bank accounts, submitting life certificates regularly, and keeping other personal or employment records in order. These procedural updates are a must to avoid any sort of delay or blockade in pensions.
Eligibility And Benefits
EPS 95 is for those who contributed to the EPF scheme and have a minimum of 10 years of service, mainly in factories or similar institutions. From the age of 58, an employee becomes eligible to get pension under this scheme. A pension is not only for the employee—being the survivors such as widows/widowers, children, orphans may also be benefited under certain conditions.
What You Should Do Now
- Check EPFO account and ensure that your bank account and Aadhaar are linked properly.
- Ensure submission of the life certificate from time to time and that the pension continues to be paid without any interruption.
- Keep employment records and EPS certificate carefully, especially in case of any job change. The EPS certificate issued from your former employer is needed while transferring to a new employer for accurate accounting of pension contributions from the previous employer accordingly.
Also Read: EPS-95 Pension Hike 2025: Latest Updates, New Benefits For Retirees