KEY HIGHLIGHTS
- Centre clarified in Parliament that EPS-95 pension will not be increased.
- Pensioners wanted a jump from ₹1,000 to ₹7,500, but fund deficit stopped approval.
- Government says current pension runs only with budget support; no hike for now.
For years, EPS-95 pensioners have been waiting for one big relief — increasing the minimum pension from ₹1,000 to ₹7,500.
Every time the topic comes up in Parliament, hopes rise again. And this time too, many thought the government might finally take a big call.
But the reply wasn’t what pensioners were expecting.
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Government says “No hike for now”
During the ongoing winter session, Lok Sabha MP Suresh Gopinath Mhatre asked the government a straight question —
“Will the EPS-95 pension be increased to ₹7,500?”
The answer was direct: No proposal is under consideration.
Before we go further, here’s a quick table for clarity.
EPS-95 Pension Hike 2026 highlight
| Topic | Current Status | What Pensioners Demand | Government’s Reason |
|---|---|---|---|
| Minimum Pension | ₹1,000 per month | Increase to ₹7,500 | EPS fund deficit |
| DA (Dearness Allowance) | Not given | Pensioners want DA due to inflation | Not part of EPS structure |
| Fund Health | Actuarial deficit (as of March 2019) | Needs overhaul | Not sustainable for higher payout |
| Government Support | ₹1,000 pension given only because of Union Budget backing | Pensioners expect long-term solution | New funding model required |
What exactly did the government say?
Minister of State for Labour & Employment Shobha Karandlaje stated that the EPS Fund is already under a heavy actuarial deficit based on the last valuation (31 March 2019).
Simple words, yaar — the fund doesn’t have enough money to support a higher pension.
Even the current ₹1,000 pension is possible only because the Union Budget supports it.
So, without a new funding model, increasing the pension could put the entire scheme at risk.
And for those hoping for DA — that’s not happening either.
EPS-95 does not include dearness allowance in its structure, which is why pensioners don’t get it.
Why pensioners are upset
Life has become expensive — from medicines to basic household expenses.
₹1,000 barely covers a week’s cost for many retirees.
This is why pensioners’ groups across India have been demanding the ₹7,500 minimum pension + DA for years.
But without a financial framework to support it, the government isn’t ready to commit.
What is the EPS-95 scheme?
Launched in 1995, EPS-95 is India’s biggest pension scheme with over 80 lakh pensioners.
Here’s how the contributions work:
- Employers contribute 8.33% of an employee’s salary
- Government contributes 1.16%
- Contributions are capped at a ₹15,000 wage ceiling
- Minimum pension of ₹1,000 was introduced in 2014
The issue is simple:
Payments have grown, costs have grown, but contributions haven’t kept pace — leaving the fund stretched.
What next?
Unless the government redesigns the funding model — by increasing contributions, revising wage limits, or adding additional budgetary support — a higher pension is unlikely anytime soon.
Pensioners may need to keep pushing, but as of now, the official stance is firm:
No hike, no DA, no change.
Frequently Asked Questions
1. Is the EPS-95 pension definitely not increasing right now?
Yes. The government has clearly said there is no proposal to raise it from ₹1,000 to ₹7,500.
2. Why can’t EPS-95 pension be increased?
Because the EPS fund is already running at a large deficit and cannot support higher payouts without a new funding system.
3. Will pensioners get DA (Dearness Allowance)?
No. DA is not part of the EPS framework, so it is not provided to pensioners.
