EPS-95 Pension Hike: Will Minimum Pension Rise from ₹1,000 to ₹7,500? Here's What the Government Said

publisher-logo
Indiaemploymentnews
Sat Dec 06 18:36:46 IST 2025
whatsapp
Newspoint

EPS-95 Pension Update: Will the Minimum Pension Increase to ₹7,500? Government Clarifies Stand

As inflation continues to rise sharply across the country, senior citizens dependent on the Employees’ Pension Scheme (EPS-95) are finding it increasingly difficult to manage daily expenses. From medicines to essential household needs, everything has become costlier—yet the minimum monthly pension remains stuck at the old level of just ₹1,000.

Recently, this concern was raised again in Parliament, sparking fresh hopes among nearly 80 lakh pensioners. The big question: Will the EPS-95 minimum pension be increased from ₹1,000 to ₹7,500?

Hero Image
Unfortunately, the government’s response has disappointed many.

MP Raises Question in Lok Sabha: Will 80 Lakh Pensioners Get Relief?

During a recent session of Lok Sabha, MP Baliya Mama Suresh Gopinath Mhatre directly questioned the government on whether it is considering a revision of the EPS-95 minimum pension.

He reminded the House that the Employees’ Pension Scheme—launched in 1995—was meant to provide financial security to retired workers. However, a pension of just ₹1,000 per month is far from enough to maintain a dignified life in today’s economic reality.

For more than a decade, EPS pensioners have been demanding:

  • A minimum pension of at least ₹7,500

  • Dearness Allowance (DA) benefits

  • Pension revision linked to inflation

  • A more rational and sustainable payment structure

Through rallies, protests, and memorandums, pensioners have repeatedly urged the government to update the scheme in line with rising living costs.

Government’s Stand: ‘No Proposal to Increase Pension at Present’

The reply from the government has left pensioners disappointed.
Minister of State for Labour and Employment Shobha Karandlaje clearly stated in Parliament that there is no proposal to increase the minimum EPS-95 pension as of now.

She explained:

  • The 2019 fund valuation report revealed that the EPS fund is already in actuarial deficit.

  • The fund currently does not have adequate reserves to meet future pension liabilities.

  • EPS is a contributory pension scheme, not a salary-linked system like government pensions. Thus, automatic DA increases or inflation adjustments do not apply.

  • Even the existing minimum pension of ₹1,000 is being supported through additional budgetary allocation by the government.

  • Increasing the pension amount without sufficient corpus is not financially feasible at the moment.

In clear terms, the minister noted that the government cannot raise the minimum pension unless the fund becomes financially sustainable.

Why Is the Demand Growing Stronger?

EPS-95 pensioners are among the most financially vulnerable groups in the country. Many of them worked in low-income jobs throughout their careers. After retirement, the EPS pension is often their only source of support.

Compared to government employees—who receive periodic salary hikes, DA increases, and pension revisions—EPS pensioners feel left behind. With the cost of essential goods rising constantly, a ₹1,000 monthly pension is no longer sufficient to cover even basic expenses.

For many retirees in the private and unorganized sectors, this gap between rising inflation and stagnant pension has become a serious concern.

Conclusion

The debate over increasing the EPS-95 minimum pension is far from over. While the government has made it clear that there is no plan to raise the pension currently, the pressure from nearly 80 lakh pensioners continues to grow.

As inflation pushes the cost of living higher each year, the demand for a more reasonable and sustainable pension amount is likely to intensify further. Whether the government reconsiders its position in the future remains a key issue to watch.

Next Story