In a significant milestone for more than 7.5 million pensioners, the government is planning to revise the minimum pension under the Employees’ Pension Scheme (EPS-95). After persistent demands from trade unions and retirees, the Ministry of Labour & Employment has recognised the necessity for a meaningful increase. The latest plan seeks to revise the minimum pension to ₹7,500 from ₹1,000, a 650% increase, which has the potential to greatly enhance the financial security of retired workers throughout India.
What is EPS-95?
EPS-95 is a social security scheme set up in 1995 within the EPFO system. It offers a monthly pension to employees in the organised sector after they retire, become disabled, or upon death. The scheme is funded by employer contributions and the central government.
Why the hike?
The pension of ₹1,000 has been critiqued for a long time and was considered to be too low. Inflation, in addition to rising medical expenses, has made life difficult financially for pensioners. The EPS aims to provide a minimum pension of ₹7,500 which is expected to improve the quality of life and provide a more dignified life for the retirees.
Response from the Government
In the recent Parliament session on July 24, 2025, the Minister of State for Labour and Employment acknowledged multiple representations have been received. From a fiscal standpoint, the fund has an actuarial deficit. Nevertheless, the government is contemplating a budgetary allocation to address the proposed increase.
Projected Timeline
Although no dates have been officially published, several sources indicate the July 2025 credit revision. Considering an early flow in crediting the adjusted pension, the due credit may be July 1, 2025. The festive season may also serve as a trigger for the early rollout of the revision.
Who Benefits?
All pensioners within the EPS-95 scheme, irrespective of the pre-65 pension revision and ESA disability pension benefits, are eligible. The subset of pensioners includes private company retirees, widowed spouses, disabled dependents along with other eligible nominees under the scheme.
Revised Pension Structure
Here’s a simplified look at the proposed pension changes:
| Category | Current Pension | Proposed Pension |
|---|---|---|
| Minimum Monthly Pension | ₹1,000 | ₹7,500 |
| Widows/Widowers | ₹1,000–₹2,000 | ₹7,500 |
| Disabled Children/Orphans | ₹1,000–₹2,500 | ₹7,500 |
| Nominees (No Family) | ₹1,000 | ₹7,500 |