KEY HIGHLIGHTS
- EPS-95 pension hike to ₹7,500 was raised again in Parliament.
- Government clearly said: no proposal right now due to fund deficit.
- Minimum pension stays at ₹1,000 unless EPS funding structure changes.
A big question is making the rounds again — will private-sector employees finally get a ₹7,500 EPS-95 pension?
The matter was raised in Parliament, and the government’s reply has cleared the air.
Millions of pensioners were hoping for a positive update. But the response wasn’t what they wanted to hear.
EPFO Minimum Pension: Will It Really Increase to ₹7,500?
| Topic | Current Situation | Government’s Stand | Future Possibility |
|---|---|---|---|
| Minimum Pension | ₹1,000/month | No proposal to increase | Only if funding model changes |
| Demand | Increase to ₹7,500–₹9,000 | Not accepted | Uncertain |
| DA (Dearness Allowance) | Not applicable | EPS is defined contribution | DA unlikely |
| Fund Status | Actuarial deficit (2019) | Not enough to support hike | Needs major reforms |
| Govt Support | 1.16% contribution + ₹1,000 guarantee | Continues | No new additions |
What Exactly Happened in Parliament?
During the Winter Session on 1 December 2025, MP Suresh Gopinath Mhatre asked the Labour Ministry whether the minimum pension would be raised from ₹1,000 to ₹7,500.
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He also questioned why DA isn’t paid, why pensions haven’t been revised for years, and whether the government is planning any steps to make the scheme more “livable.”
The questions were straight from the concerns of lakhs of struggling pensioners.
How the EPS-95 System Works
EPS-95 covers more than 80 lakh pensioners, making it India’s largest pension system for private-sector workers.
It works on two contributions:
- 8.33% from the employer
- 1.16% from the central government (on salary up to ₹15,000)
The minimum pension of ₹1,000 was introduced in 2014, which many say hasn’t kept up with today’s cost of living.
What Pensioners Have Been Demanding
EPS-95 pensioners have spent years protesting and submitting petitions. Their key demands are:
- Minimum pension of ₹7,500–₹9,000
- Regular DA like government employees
- Higher pension restoration
- A more updated and livable scheme
For many of them, this pension is their only income source.
What the Government Said
Minister of State for Labour Shobha Karandlaje made it clear:
- There is no proposal to increase pensions right now.
- The EPS fund is in deficit, as per the last valuation in 2019.
- Raising the pension without fixing the funding structure could worsen the fund’s condition.
That’s the asli sach — the system simply doesn’t have enough money.
What About DA for EPS Pensioners?
The government explained that EPS-95 is a defined contribution scheme.
It doesn’t work like government salary-linked pensions.
That means:
- No DA
- No inflation-linked increases
- No automatic revision
This is why private pensioners feel left behind while government retirees get regular pay hikes.
Why the ₹1,000 Pension Feels Too Low
Most EPS-95 members worked in private or low-wage jobs.
₹1,000 per month barely covers basic needs — forget medical bills, groceries, or rising household costs.
With inflation climbing each year, this gap keeps widening. Naturally, frustration has grown.
Will the Pension Increase in Future?
Experts say the answer depends on one thing — money.
A hike may happen only if:
- Employer contribution increases
- Government allocates additional funds
- EPS structure is redesigned
Without these changes, expecting a ₹7,500 pension in the near future seems tough.
Frequently Asked Questions
Is the government planning to raise EPS-95 pension to ₹7,500?
Not at the moment. The ministry has clearly stated there is no proposal due to the fund deficit.
Why doesn’t EPS-95 pension include DA?
Because EPS is a defined contribution system, not linked to salary or inflation. DA is not part of its structure.
Can the minimum pension increase soon?
Only if major reforms happen in funding — employer contributions, government support, or structural changes.
