EPS minimum pension hike: The long-pending demand to raise the minimum pension under the Employees’ Pension Scheme (EPS-95) from Rs 1,000 to Rs 7,500, along with dearness allowance and medical facilities, remains unresolved.
The Centre was yet again asked in parliament to explain why the minimum pension under the EPS has not been raised to Rs 7,500 from the existing Rs 1,000. The government also faced a question on the delay in implementing Supreme Court’s direction on pension fixation.
In the Lok Sabha on December 15, MP Rajesh Ranjan asked the Labour Ministry to explain the reasons delay in increasing the pension and in fully implementing pension fixation as per Supreme Court directions.
In a written reply, the Ministry of Labour and Employment outlined why the demand of EPS-95 pensioners has not yet been accepted, even as it acknowledged the scale of the issue and provided an update on compliance with court orders.
What pensioners are demanding
EPS-95 pensioners have been demanding a minimum monthly pension of Rs 7,500, family pension, dearness allowance and free medical facilities. According to the question raised in Parliament, around 78 lakh EPS pensioners across the country are facing financial hardship in old age and have been pressing the government for relief through peaceful agitations for several years.
The demand has been pending for a long time, with pensioners repeatedly seeking a clear decision and a timeline from the government.
Current pension and when it was fixed
At present, the minimum pension under EPS-95 is Rs 1,000 per month. This minimum amount was fixed in 2014, with the government providing budgetary support to ensure that no pensioner receives less than this amount.
Since then, there has been no revision in the minimum pension, despite rising living costs. The pension under EPS is also not linked to inflation or dearness allowance.
How EPS pension is funded
Explaining the structure of the scheme, the Labour Ministry said EPS-95 is a “defined contribution–defined benefit” social security scheme.
“The corpus of the Employees’ Pension Fund is made up of (i) contribution by the employer @8.33% of wages; and (ii) contribution from Central Government through budgetary support @1.16% of wages up to an amount of Rs 15,000/- per month. All benefits under the scheme are paid out of such accumulations,” the ministry said.
Actuarial deficit cited as key reason
“The fund is valued annually as mandated under paragraph 32 of EPS, 1995 and as per the valuation of the fund as on 31.03.2019, there is an actuarial deficit,” it added.
This deficit, the ministry said, is a key reason why a sharp increase in minimum pension or linking EPS pension with the cost-of-living index is difficult.
The government also pointed out that it already provides additional budgetary support to ensure the Rs 1,000 minimum pension, over and above the regular 1.16% contribution made every year.
DA-linked pension found ‘not feasible’
The ministry referred to the recommendations of a High Empowered Monitoring Committee (HEMC), which examined the issue of introducing dearness allowance under EPS-95.
The committee concluded that linking EPS pension with the cost-of-living index or providing DA is not feasible, given the actuarial position of the fund.
Supreme Court directions: what has been done
The question also sought details on the implementation of Supreme Court judgments dated October 4, 2016, and November 4, 2022, which relate to pension fixation based on higher wages.
In response, the government said the Employees’ Provident Fund Organisation (EPFO) has taken steps to implement the Supreme Court’s November 2022 judgment in a time-bound manner.
An online facility was provided for submission of applications for validation of joint options. By the last date of July 11, 2023, a total of 17.49 lakh applications were submitted by pensioners and members. Of these, around 15.24 lakh applications were forwarded by employers to EPFO by January 31, 2025.
As of November 24, 2025, nearly 99% of the applications received by EPFO have been processed, the ministry informed Parliament.
No timeline yet on pension hike
While the government detailed the financial constraints and the progress on Supreme Court compliance, it did not announce any timeline for increasing the minimum pension to Rs 7,500 or for extending DA and medical facilities.
For EPS-95 pensioners, many of whom have been raising this demand for years, the reply reiterates the government’s position but stops short of offering a policy decision — keeping the wait for a higher pension ongoing.
