EPFO minimum pension: The demand to increase the EPS-95 pension to ₹7,500 was raised again in Parliament, but what was the government’s response? What does the fund situation indicate, and how much is the pension expected to increase in the future? Find out the answers to all these questions.
EPFO minimum pension: For the past several months, there have been reports that the government may increase the minimum pension under the Employees’ Pension Scheme 1995 (EPS-95). The plan is to increase it from the current ₹1,000 to ₹7,500. In October 2025, some media reports claimed that this proposal could be discussed at the EPFO’s Central Board of Trustees (CBT) meeting. However, there was no official confirmation.
Now, the long-standing demand for increasing the minimum pension for EPS-95 pensioners has been questioned in Parliament. During the winter session on December 1, 2025, the government was asked whether there was a plan to increase the minimum pension from ₹1,000 to ₹7,500. This demand has been raised by millions of pensioners across the country for many years.
What was asked of the government?
In the Lok Sabha, Member of Parliament Balaya Mama Suresh Gopinath Mhatre asked the government six questions: Will pensions increase? Why aren’t they increasing? Why isn’t DA being paid? Have pensioners’ demands been studied? And are steps being taken to make the scheme more livable?
How does EPS-95 work?
EPS-95 is the country’s largest pension system, covering over 8 million pensioners. The scheme is funded from two main sources: an employer’s 8.33% contribution to an employee’s salary and a 1.16% contribution from the central government (up to a salary limit of ₹15,000). Pensioners consider the minimum monthly pension of ₹1,000, implemented in 2014, to be too low in today’s inflation.
Key Demands of Pensioners
EPS-95 pensioners have staged numerous protests and petitions over the past decade. Their main demands include increasing the minimum pension to ₹7,500-₹9,000, implementing regular DA, restoring higher pensions, and improving the scheme to make pensions livable.
Government’s Response
Minister of State for Labor Shobha Karandlaje stated that there is currently no proposal to increase pensions. The main reason for this is the financial condition of the EPS Fund.
As of the last valuation in 2019, the EPS Fund has an actuarial deficit, meaning it does not have enough money to meet future pension liabilities. The government states that increasing the minimum pension in this situation would further put pressure on the fund.
How is the minimum pension achieved?
The government ensures the payment of a minimum pension of ₹1,000 per month through budgetary support. It also continues its 1.16% contribution. However, the government has not made any commitment to providing DA or increasing pensions.
Why is DA not paid?
According to the government, EPS is a “defined contribution” scheme. It is not a salary-linked scheme like the one for government employees. Therefore, DA is not part of its structure. This is why pensioners do not benefit from DA increases, even as inflation continues to rise.
Pensioners’ Difficulties
Most EPS-95 beneficiaries worked in private and low-paying jobs. Pension is their primary income. After accounting for inflation, medical expenses, and rising costs of living, the current pension amount is considered insufficient. In contrast, government employees receive DA and regular salary increases. This further highlights the inequality.
Can pensions increase further?
Experts believe that pensions can only be increased if significant changes are made to the scheme’s funding model, such as increasing employer contributions, additional government support, or improving the EPS structure. Without these changes, raising the minimum pension is considered difficult.
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