Demands for a fair hike have picked up again because the current pension is simply too low to handle basic expenses. The proposed changes aim to raise the minimum pension, introduce a clearer calculation method and bring a fresh pension table for lakhs of retirees.
Summary of Expected EPS 95 Changes (2026)
| Feature | Current System | Expected 2026 Update |
|---|---|---|
| Minimum Pension | Very low, often insufficient | Likely to rise to ₹7,500–₹10,000 |
| Pension Table | Old slabs based on service | New slabs + added weightage |
| Calculation Method | Basic formula with older salary rules | Updated formula with higher pensionable salary |
| Bonus for 20+ Years | Limited clarity | Additional weightage expected |
| Higher Pension Applicants | Pending clarity | Revised payouts based on full contributions |
| Beneficiary Sectors | All EPS 95-covered workers | Strongest benefit for organised sector workers |
Minimum Pension May Finally Get a Boost
The biggest demand has always been the same:
“Increase the minimum pension to a livable amount.”
Reports hint that the government is reviewing proposals to raise the pension to ₹7,500–₹10,000 per month. For many seniors, this could mean real support instead of a token payout.
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A slab-based system may also be introduced so that workers with longer service get a better base pension.
New Pension Table 2026: What You Can Expect
A revised pension table is likely to bring more clarity and fairness.
Longer service = higher slab.
Shorter service = lower slab.
Those who completed 20+ years may get extra weightage, increasing their monthly amount even further. Early retirees, higher pension applicants and employees with mixed salary structures may all find improved entries in the updated table.
Updated EPS 95 Pension Calculation (The New Approach)
The basic formula may remain:
Pension = (Pensionable Salary × Pensionable Service) ÷ 70
But the important change could be how pensionable salary is defined.
Instead of the older “basic + DA” model, the revised calculation may use the highest average salary of the last working years.
For many workers, this single change can push their final pension amount up sharply.
Bonus for long service may also continue, benefiting those with 20–25 years of contribution.
Who Will Gain the Most in 2026?
If you worked for 20+ years and your salary increased during your final years, you’re likely to see the biggest jump.
Workers from:
- Railways
- Steel
- Manufacturing
- Textile
- Public undertakings
…may benefit the most because of their steady employer contributions.
Those who opted for the higher pension scheme under EPFO’s court-mandated process may finally get a corrected payout reflecting their full contributions.
Higher Pension Applicants: Big Relief Expected
Lakhs of pensioners opted for higher pension but are still waiting for a proper revised amount.
The 2026 updates may finally fix this.
If the new formula includes full salary-based contribution calculations, higher pension applicants should receive a noticeably larger monthly payout compared to regular EPS members.
Challenges Still on the Table
Not everything is final yet.
Questions remain about:
- Funding the higher pension
- Employer contribution adjustments
- Long-term sustainability
EPFO may roll out the hike in phases or introduce a central-support model for minimum pension protection.
Still, pensioners remain hopeful because discussions are moving in a positive direction.
