New Delhi: The long‑standing demand to increase the minimum pension under the Employees’ Pension Scheme (EPS‑95) from ₹1,000 has once again come into focus, raising expectations among lakhs of retired EPFO subscribers across India. However, no official approval or notification has been issued by the Centre so far.
The issue has resurfaced amid rising inflation and repeated representations from pensioners’ organisations, but the government has maintained that any revision must follow due process and financial assessment.
Key highlights
- Current minimum EPS pension: ₹1,000 per month
- Demanded revision: ₹9,000; some unions seek ₹7,500
- Affected pensioners: Over 47 lakh EPS retirees
- Status: Under consideration; no official approval yet
Core facts
The Employees’ Pension Scheme, administered by the Employees’ Provident Fund Organisation (EPFO), currently guarantees a minimum monthly pension of ₹1,000. This amount was last revised in 2014 and applies to pensioners who have completed at least 10 years of eligible service.
According to official data, over 47 lakh EPS pensioners currently receive less than ₹9,000 per month, highlighting the scale of the issue and the financial vulnerability faced by a large section of retirees.
Since 2014, multiple pensioners’ associations and trade unions have argued that the existing pension is inadequate to meet basic living and healthcare expenses. While the demand to raise the minimum pension to ₹9,000 has gained prominence, some unions have also proposed a lower revision to ₹7,500, citing fiscal constraints.
Unlike government pensions, the EPS‑95 pension is not inflation‑indexed and does not include dearness allowance (DA). Pensioners say this structural limitation has steadily reduced the real value of the pension, strengthening calls for a higher fixed minimum.
Despite these representations, the government has not committed to any specific increase. Official responses have consistently stated that enhancing the minimum pension involves significant financial implications and must be examined through actuarial valuation of the EPS fund.
Impact and official response
The Ministry of Labour and Employment has acknowledged receiving memoranda from pensioners’ bodies seeking a revision of the minimum pension. In recent parliamentary replies, the government reiterated that any increase would require recommendations from the Central Board of Trustees (CBT) of EPFO, followed by approval from the Union Cabinet.
Officials have also pointed out that the EPS‑95 fund is running an actuarial deficit, which remains a key constraint in approving a higher pension floor. Details are awaiting official confirmation, and no timeline has been announced for a decision.
Pensioners have been advised to rely only on official notifications from the EPFO or the Labour Ministry and to avoid speculative claims circulating on social media.
Why EPS pension hikes are fiscally complex
The Employees’ Pension Scheme (EPS‑95) is running an actuarial deficit, which limits the government’s ability to raise the minimum pension without additional funding support or structural reform.
Frequently asked questions
No. The ₹9,000 figure reflects a demand raised by pensioners’ organisations. The government has not announced or approved any such increase.
The minimum pension was last revised in 2014, when it was increased to ₹1,000 per month.
No. The EPS‑95 pension is not inflation‑indexed and does not include dearness allowance.
Any revision requires actuarial assessment, a recommendation from the EPFO’s Central Board of Trustees, and final approval by the Union Cabinet.
How EPS‑95 pension is calculated
The monthly pension under EPS‑95 is calculated using a fixed formula based on salary and years of service.
Pension formula: (Pensionable Salary × Pensionable Service) ÷ 70
Key points to note:
- Pensionable salary is capped at ₹15,000
- Minimum 10 years of service required
- No inflation indexation
- No dearness allowance (DA)
Community prompt: Do you think the current EPS pension is sufficient for retirees today?
Disclaimer: This report is for general informational purposes only and is based on officially available data. Pension rules, benefits, and revisions are subject to government notifications. Readers should refer to EPFO or the Ministry of Labour for the latest updates.
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