EPFO Monthly Pension Scheme: Will Government Hike EPS-95 Minimum Pension From INR 1,000 to INR 7,500 Ahead of Diwali 2025?

New Delhi, September 28: The Employees’ Pension Scheme (EPS), 1995, under the Employees’ Provident Fund Organisation (EPFO), has once again come under the spotlight as discussions around a possible increase in the minimum pension gain traction ahead of Diwali 2025. Currently, the government provides a minimum monthly pension of INR 1,000 to EPS pensioners, supported through budgetary allocations in addition to the 1.16% contribution of wages by the central government.

Earlier in 2025, there were speculations and hopes that the minimum EPS pension could rise substantially, with some reports suggesting an increase to INR 7,500. However, the Ministry of Labour and Employment has indicated that a significant hike is unlikely due to the actuarial deficit in the EPS fund. The EPS is a “Defined Contribution-Defined Benefit” social security scheme, funded through 8.33% of employee wages contributed by employers and 1.16% by the government on wages up to INR 15,000 per month. Benefits are paid from these accumulated contributions, and the fund is valued annually. Indian Government Spent INR 340 Crore on EPFO Website in Past 3 Years, Finds RTI Reply.

Minister of State for Labour and Employment, Shobha Karandlaje, informed the Lok Sabha that, while the government is providing INR 1,000 as the minimum pension, raising it to INR 7,500 would require either higher contributions or significant additional budgetary support. What Is EPFO Passbook Lite? Employees’ Provident Fund Organisation Introduces Simplified PF Account Access, Check Details.

EPS differs from EPF in that EPF serves as a retirement savings plan providing a lump sum with interest, while EPS guarantees a defined monthly pension post-retirement based on pensionable service and salary. Given the current financial constraints and actuarial deficit in the EPS, pensioners should manage expectations, as a major hike in the minimum monthly pension appears unlikely in the near term.

(The above story first appeared on LatestLY on Sep 28, 2025 11:22 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).