According to a recent report, the Employees’ Pension Scheme (EPS-95) might be significantly reformed in January 2026, with the minimum monthly pension proposed to be increased from ₹1,000 to ₹7,500. Besides, the update recommends the payment of Dearness Allowance (DA) to pensioners. A cheer of hope has gone up from millions of retired workers who have been demanding an equitable and inflation-adjusted amount of pension for a long time.
Reasons for the Increase in Pensions for EPS Retirees
EPS-95 has been the subject of criticism for giving very low pension benefits even after the retirees have made contributions for decades. The pension amount of ₹1,000 has been a great hardship for most of the pensioners as medical costs, food prices, and living expenses keep rising. The proposed increase to ₹7,500 along with DA is perceived as a step taken towards the financial and humane treatment of senior citizens totally relying on EPS for their livelihood. Multiple times, such pensioner associations have put forth their concerns advocating this amendment for the sake of one’s economic reality.
How EPS-95 Operates and Who Gains
Employees’ Pension Scheme being one of the social security systems that covers the workers of the organized sector and is run by EPFO is a significant system of employee benefits. As an employer, one pays 8.33% of the worker’s salary to the pension fund and the government backs the scheme with an additional subsidy. Once a worker retires after fulfilling the minimum required service period he is eligible to receive a pension. However, a large number of the pensioners receive higher payouts based on the duration of employment and contributions made; the lowest amount given as a pension has been consistently frozen at ₹1,000 for many years. Consequently, the scenario has led to discontent amongst the low-income retiree population who are most affected.
Official Clarification: No Approved Increase Yet
Even though there has been speculation around the ₹7,500 pension, the Government of India made it clear in Parliament that no such plan is officially approved. The Ministry of Labour stands on the ground of an actuarial deficit in the EPS fund, which is posing a hurdle to the process of increasing the minimum pension and restructuring the fund at the same time. Thus, the online talks remain unproven and non-official. The minimum pension stays at ₹1,000 per month and no DA component has been added for the time being.
What Pensioners Should Expect Going Forward
The idea of a ₹7,500 minimum pension has produced positive feelings, but still, the pensioners are urged to keep on waiting for an official communication from EPFO or the Labour Ministry. Any change that will be confirmed will be posted on government portals and also will be directly notified to the beneficiaries. Until then, the retirees should remain skeptical about the viral claims. The demand for a decent pension hike is still very loud, and the future updates will be conditional on the government’s decisions, the funds’ health, and the actuaries’ evaluations.
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