The government is currently contemplating a very sizeable enhancement to the monthly minimum pension under EPS-95, which is the program run by the Employees’ Provident Fund Organisation (EPFO) for employees of the organized sector. At present, the lowest pension is ₹1,000 per month which has been consistent for quite a long time even when the prices of goods and services keep going up and the inflation rate rises. Trade unions and pensioner groups have been asking the government to increase this bottom line with suggestions varying from ₹1,000 to ₹7,500 a month.
Reasons For The Increase To Be Considered
The EPS scheme has not been reviewed in-depth since its start in 1995, and a parliamentary committee has brought this to light, making it mandatory to do this review by the end of 2025. The committee also pointed out the fact that the amount of the minimum pension is definitely obsolete considering the “manifold increase in the cost of living” since the ₹1,000 floor was first established. Internal suggestions at EPFO have thus proposed to raise the base pension to anywhere between ₹3,000 to ₹7,500 — however, the final acceptance and the date for application remain undecided as of now.
What Will The Increase Provide?
It is an increase in the minimum pension that can bring the most important succor to the retiring population of very low income who are mostly surviving on the pension. Analysts predict that even the small hike of ₹3,000 would remove the financial burden off many low-income pensioners — yet, a figure closer to ₹7,500 is seen by unions as the “realistic” one needed. Moreover, there is a proposal to build a dearness allowance (DA) component into the pension which would make the pension linked with the inflation rate and thus help in retaining the purchasing power longer.
Current Status & What Pensioners Should Know
Currently, there exists an official decision regarding the increase of the minimum pension limit to ₹7,500 or more. The government informed the Parliament that a decision is being reviewed but no firm timeline or amount has been set. The Pensioners and EPFO subscribers are requested to keep an eye on the notifications, refresh their contact and account information, and verify that their service records are correct, as the possible future increase will probably demand sophisticated administrative procedures.