Going to the cradle of rest to give much-needed relief to lakhs of retired private sector workers, the highest increase has been approved for the pension under Employees’ Pension Scheme, 1995 (EPS). The minimum monthly pension under EPS shall stand increased from the present ₹1,000 to ₹8,500 in 2025, thus meeting a long pending demand by the pensioners as well as trade unions, who have always felt that the earlier amount could hardly suffice to maintain one’s basic living expenses.
Reasons For Increase
This cap of ₹1,000 remained static over several years while inflation, health care, and basic necessities were going up. The EPS-95 pensioners had in the past agitated for raising the pension, many organizations supporting their plea going to the government to consider the matter in the light of modern-day economic conditions.
After much deliberation and a favorable recommendation of a high-level committee, now the government has set the minimum pension at ₹8,500, marking nearly a 750% increment in the annals of EPS.
Who Are Gratified?
The increase will primarily cover those pensioners who are retired from employee or private services, had contributed to the Employees’ Provident Fund Organisation (EPFO) for a minimum period of 10 years, and retired as per conditions under the EPS-95 scheme. Revision also appears to be applicable for existing pensioners who can avail of immediate financial relief through the benefits of approximately 75 to 80 lakh beneficiaries spread all over India.
Those receiving less than ₹8,500 per month will automatically be attended to with pension revision under the new scheme from the Ministry of Labour and Employment.
Implementation Schedule
In the view of official sources, the new rates are to be made applicable on pensioners starting April 1, 2025, and the funds against the increase would hence be credited onto pensioners’ banks starting from May 2025. Formal circulars may be issued by the EPFO parallelly to effect an update to the current pension disbursement system.
Future Outlook
The government is also considering other reforms to enhance the financial security of EPS-95 pensioners, including automatic linkage to Dearness Allowance (DA), optional higher contribution slabs, and the provision of digital pension tracking services.
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