For years, lakhs of pensioners under EPS-95 have been waiting for one thing a decent monthly pension.
Right now, many get just ₹1,000–₹3,000, which barely covers basic expenses in India.
So when the Labour Ministry finally addressed the issue, everyone expected some relief.
But the update wasn’t exactly the “good news” pensioners were hoping for.
What Did the Government Say?
The government clarified that EPS-95 currently has an actuarial deficit — meaning the money in the fund isn’t enough to take on higher pension payouts.
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The minimum ₹1,000 pension is possible only because the Centre adds extra budget support every year.
Without this, even ₹1,000 wouldn’t be feasible.
EPS-95 Pension Overview (Quick Comparison Table)
| Category | Current Situation | Pensioners’ Demand |
|---|---|---|
| Minimum Monthly Pension | ₹1,000 (with govt support) | ₹9,000 |
| Fund Status | Actuarial deficit (2019 valuation) | Needs major restructuring |
| Employer Contribution | 8.33% of salary | No change demanded |
| Govt Contribution | 1.16% (salary limit ₹15,000) | Must be increased |
| Pension Hike Status | No approval yet | Immediate approval |
Why This Pension Hike Is Getting Delayed
EPS-95 runs on a Defined Contribution–Defined Benefit structure.
Employers contribute 8.33%, and the government contributes 1.16% — but only up to a wage ceiling of ₹15,000.
This system worked decades ago.
Today, with rising living costs, a ₹1,000–₹3,000 pension simply doesn’t match inflation.
The fund valuation from 31 March 2019 showed a large deficit.
So a sudden increase to ₹9,000 would require thousands of crores of additional annual support.
What Pensioners Are Demanding
EPS-95 retirees across India protest every year on 16 November, calling it “Black Day” to highlight their struggles.
Their main demands:
- Minimum pension of ₹9,000
- Medical benefits
- Removal of old wage ceilings
The recent protest at the Regional PF Office in Visakhapatnam once again put pressure on the government.
Government’s Stand: Supportive, But Cautious
The minister said the government is committed to giving the best possible support, but decisions must consider:
- The fund’s long-term stability
- Future liabilities
- Contribution pattern
So the message is simple:
The pension hike is not approved yet, but discussions may happen once the new valuation is reviewed.
EPS-95: Explained in Simple Words
EPS-95 is a pension scheme under EPFO.
It provides lifelong monthly pension for:
- Retirement
- Permanent disability
- Family members after death
The pension depends on:
- Average pensionable salary (last 5 years)
- Total years of service
Because older wage ceilings were low, most retirees still receive only ₹1,000–₹3,000 per month.
