A Pension of Only ₹1,000 Amidst High Inflation? Major Update on the Upcoming EPFO ​​Meeting

There have been demands to increase the minimum monthly pension under the Employees' Pension Scheme (EPS)—currently set at ₹1,000—to ₹7,500. However, no final decision regarding this increase has been reached yet.

It is well understood that for retirees, a pension serves as the primary means to cover monthly living expenses. In these times of high inflation, managing on a pension of just ₹1,000 is far from easy. Consequently, there has been a long-standing demand to raise the minimum pension provided under the Employees' Pension Scheme (EPS). Notably, this issue is expected to be discussed during the upcoming meeting of the Employees' Provident Fund Organisation (EPFO) in November.

The 240th meeting of the EPFO’s Central Board of Trustees (CBT) is scheduled for November 19. It is anticipated that the potential increase in the minimum pension will be a topic of discussion, though this remains speculative at this stage. The meeting is set to take place in Gir, Gujarat. This raises the questions: what is the current minimum pension, and what is the extent of the increase being demanded?

What is the current pension amount?

Under the EPS-95 scheme, the minimum monthly pension is currently ₹1,000—a figure that has been the subject of periodic demands for an upward revision. It is worth noting that this pension amount has remained unchanged since September 2014. Employee unions and pensioners have long been advocating for an increase in this amount, as well as the provision of a Dearness Allowance (DA).

What is the proposed increase?

The demand is to raise the minimum pension under the EPS-95 scheme from ₹1,000 to ₹7,500. There are several reasons behind this call for an increase. Most importantly, it is not easy to get by on a pension of ₹1,000 in these times of high inflation. It is impossible to cover the costs of groceries and medicines with just ₹1,000.

Has any decision been reached regarding the demand?

No, no decision has been made on this yet. If a decision is taken, it could provide significant relief to pensioners—especially those who rely solely on their pension to sustain themselves after retirement. However, there has been no final announcement regarding whether the pension will actually be increased. Furthermore, it remains unclear whether a final decision on this matter will be part of the agenda for the meeting scheduled for November 19.

What are the challenges in increasing the pension?

The crucial point is that, when considering an increase in pensions, the government must also ensure that there are sufficient funds available in the pension pool. In other words, before implementing any hike, the government must assess the additional financial burden it would incur.