Those opening PF accounts are about to hit the jackpot; the government appears to be in full swing to increase pensions..

Major good news may soon be in store for those investing in Employee Provident Fund (EPF) accounts. On Tuesday, a parliamentary committee recommended increasing the minimum monthly pension under the EPFO's Employees' Pension Scheme, 1995, from the current level of ₹1,000. The committee stated that this amount needs to be raised to a dignified level, as, given the prevailing inflation and cost of living, the current sum cannot be considered adequate by any standard.

This recommendation comes at a time when pensioners are demanding that the pension be increased to ₹7,500 per month. They argue that it is extremely difficult to make ends meet on just ₹1,000. Pensioners covered under the Employees' Pension Scheme, 1995 (EPS-95)—which is administered by the Employees' Provident Fund Organisation (EPFO)—also staged a three-day protest at Jantar Mantar starting March 9, pressing their demand to raise the minimum monthly pension to ₹7,500. Currently, the scheme provides for a pension of merely ₹1,000.

Why the Demand for a Pension Hike?

In its 15th report regarding the Ministry of Labour and Employment's 'Demands for Grants (2026-27),' the Parliamentary Standing Committee on Labour, Textiles, and Skill Development noted that, despite rising inflation, the minimum pension under the Employees' Pension Scheme has remained unchanged at ₹1,000 per month for a considerable period. While examining the evidence, the committee observed that it had received numerous representations from pensioners—particularly from elderly and economically vulnerable beneficiaries—demanding an increase in the minimum pension to alleviate the financial hardships they face.

Budgetary Support Also Provided

The committee also took cognizance of the Ministry of Labour and Employment's submission stating that the Government of India is already providing financial assistance for this scheme. This assistance includes a 1.16% contribution towards the accounts of currently active members of the Employees' Provident Fund Organisation, as well as budgetary support provided to ensure the payment of a minimum monthly pension of ₹1,000. However, in the committee's view—particularly considering inflation and the rising costs of healthcare and living—the current minimum pension amount is deemed insufficient to meet even the basic needs of pensioners.

What are the Committee's Demands?

The committee has demanded that the Ministry undertake an immediate and comprehensive review of the minimum pension under the Employees' Pension Scheme, 1995, to raise it to a more realistic and dignified level that is commensurate with the times. The committee further suggests that the Ministry explore the possibility of increasing budgetary support for the scheme, thereby ensuring that pensioners receive a fair minimum pension aligned with current living costs, and providing enhanced social security and financial stability to the millions of retired workers covered under the scheme.

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