The topic of raising the lowest pension under EPFO has again attracted the spotlight in the year 2025, which is a good sign for lakhs of retirees being the Indian Employees’ Pension Scheme (EPS-95) beneficiaries. To the extent of such retirees all over India, there is a total chorus to raise the out of which the main factors are inflation, medical care, and living costs.
Minimum Pension Now Under EPS-95
Currently, monthly pension under EPS-95 scheme is just ₹1,000, and this has been the same figure since 2014. The trade unions and the pensioners’ associations, throughout these years, have been arguing over this amount which is not even enough to cover household expenses and their argument becomes even stronger with each passing day as inflation keeps going up.
What Pensioners Are Saying
EPS-95 pensioners claim that the current pension is not even close to what a person needs to live today. For a good number of retired laborers, this pension is their only source of income. Unions have suggested an increase in the minimum pension to ₹5,000 or ₹7,500 and establishment of a Dearness Allowance (DA) to enable the pension to keep up with the inflation rate. The government has been informed of these demands during various consultations and representations.
Official Stand And Government Review
The issues that have been demanding attention for so long have been recognized by the Ministry of Labour and Employment and EPFO who have gone a step further to tell us that the matter is under their consideration. Still, the government has made it clear that an official decision about the minimum pension increase has not been made yet. The policymakers have mentioned that any hike should be backed up with actuarial studies and financial viability because the sustainability of EPS fund is a primary concern.
Possible Pension Hike Scenarios
Over the last few months, there have been talks regarding possible pension increases, among which ₹2,500 or more have been mentioned, but still, no amount has been officially sanctioned. The idea of linking pensions to DA is also under consideration, but so far it has not received formal clearance. Therefore, pensioners are advised to regard these amounts as mere proposals rather than official announcements.
What EPS Pensioners Should Do Now
At the moment, EPS-95 pensioners will receive the minimum pension of ₹1,000 until an official notification comes out. Beneficiaries are advised to keep an eye on EPFO updates and government announcements for the confirmed information regularly. An increase in pension is expected to be announced through the usual formal channels like the Union Budget or EPFO circulars.
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