EPS-95: Will there be an increase in the minimum pension under EPS-95 this festive season?

The eyes of millions of pensioners of the country are fixed on whether there will be an increase in the minimum pension under EPS-95 during the festive season this time. At present, this pension is Rs 1000 per month, the demand for which has been raised by trade unions and many public representatives for a long time. The government has admitted in Parliament that it has received many requests in this regard. However, this time, the government also did not clarify when it will make any decision.

What is EPS-95?

Employees' Pension Scheme, i.e., EPS-95, is a social security scheme started in the year 1995. Its purpose is to give a pension to employees every month after retirement. This scheme is a part of the Employees Provident Fund, i.e., EPF. While a lump sum amount is received on retirement in EPF, a fixed pension is given every month in EPS. This pension is decided on the basis of the employee's salary and years of service.

MPs raised questions about the minimum pension available in EPS-95.

Yesterday, Rajya Sabha MPs Vaiko and M Shanmugam asked the government several questions about the minimum pension available in EPS-95. Vaiko's Rajya Sabha term ended on 24 July 2025. He wanted to know that...

Has the government been considering increasing the EPS pension for a long time? If yes, then why has the decision not been taken yet despite so much pressure and court orders? When there is money in the fund, then what is the obstacle to increasing it? Will the government make a decision soon in view of the festive season?

The government gave this answer in response to the demand to increase the minimum pension.

In the reply given in the Lok Sabha, the government said that it has received many demands from trade unions and public representatives to increase the minimum pension from Rs 1000 under EPS-95. The government also said that EPS-95 is a "Defined Contribution-Defined Benefit" scheme. The fund created in this comes from two parts.

8.33 percent of the employer's salary and 1.16 percent contribution given by the central government in the budget (which applies to salary up to Rs 15000), i.e., the amount collected in this fund, that is, the pension is given based on that.

The valuation of the fund done till March 31, 2019, revealed an actuarial deficit i.e., less funding than expected. Despite this, the government gives separate budget assistance to give a minimum pension of Rs 1000 per month.

Will the pension increase during festivals?

The government did not give any direct answer to this question. That is, at present, it is not decided whether EPS-95 pensioners will get any gift on the occasion of festivals this time or not. But the government has definitely said that it will continue to provide budget support to maintain the current minimum pension of Rs 1000. This means that at present, there is no concrete timeline for increasing the pension and pensioners will have to wait longer.

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