The Centre has issued a fresh update on the long-pending demand to raise the minimum pension under the Employees’ Pension Scheme (EPS), 1995. While pensioners have been urging the government to increase the monthly pension to Rs 7,500, the latest statement indicates that no final decision has been taken yet.
At present, the minimum EPS pension remains Rs 1,000 per month.
Government Acknowledges Demands for EPS Pension Increase
Responding to an unstarred question in the Lok Sabha on July 20, Minister of State for Labour and Employment Shobha Karandlaje confirmed that the government has received multiple requests from trade unions, pensioners’ associations, and public representatives seeking a higher minimum pension under the EPS.
However, the government clarified that these proposals are still under consideration and no announcement regarding a pension hike has been made.
Why Has the Minimum EPS Pension Not Been Revised?
The government explained that the Employees’ Pension Scheme (EPS) functions as a defined contribution-defined benefit social security scheme, meaning pension payouts depend on the financial health of the pension fund.
The scheme is funded through:
- 8.33% of the employer’s contribution from employees’ wages.
- 1.16% contribution by the Central Government, calculated on wages up to Rs 15,000 per month.
According to the Centre, pension payments are made from the accumulated corpus, which is reviewed through annual actuarial assessments to ensure the scheme remains financially sustainable.
Government Focuses on Long-Term Financial Stability
Although the Centre acknowledged pensioners’ concerns, it stressed that any increase in the minimum pension must be carefully evaluated to protect the long-term viability of the Employees’ Pension Fund.
The government also pointed out that it already provides budgetary support towards the minimum pension in addition to its statutory contribution to the EPS.
What Are EPS Pensioners Demanding?
The EPS-95 National Agitation Committee has been consistently demanding major reforms to improve financial security for retired employees.
Their key demands include:
- Increasing the minimum monthly EPS pension to Rs 7,500.
- Introducing Dearness Allowance (DA) linked to inflation.
- Providing better financial assistance to retirees, many of whom currently receive pensions between Rs 1,000 and Rs 2,000 per month.
Pensioners argue that the existing pension amount is insufficient to meet rising living expenses.
Will the EPS Minimum Pension Increase to Rs 7,500?
Based on the government’s latest statement, there is no approval yet for raising the minimum EPS pension to Rs 7,500.
While the Centre has acknowledged receiving several representations from stakeholders, it has reiterated that any decision will depend on the financial sustainability of the pension fund, actuarial evaluations, and future liabilities before implementing any revision.
For now, the minimum EPS pension continues to remain at Rs 1,000 per month, and pensioners will have to wait for an official announcement regarding any increase.