Budget 2025: Will Minimum EPS Pension Rise to ₹7,500? Here’s What You Need to Know

Private sector employees covered by the Employees’ Provident Fund Organisation (EPFO) have been pushing for an increase in their minimum pension, which is currently set at ₹1,000 per month. After years of campaigning, a delegation of EPS-95 pensioners met Finance Minister Nirmala Sitharaman on January 10 to ask for a raise to ₹7,500 per month, along with dearness allowance (DA).

The Current Situation

The Employees’ Pension Scheme (EPS-95), managed by the EPFO, has had the minimum pension set at ₹1,000 per month since 2014. Despite this, pensioners have long been demanding an increase. They also want DA and free medical treatment for themselves and their spouses.

Government’s Response to Pensioners’ Demands

During the meeting with the Finance Minister, Sitharaman assured the delegation that their concerns would be looked into with care. Although this brings hope to the pensioners, they are urging the government to act quickly and announce a minimum pension of ₹7,500 with DA in the upcoming budget.

Trade Unions Advocate for Lower Pension Increase

While pensioners are asking for a ₹7,500 pension, trade unions are proposing a smaller increase. They are calling for the minimum pension to be raised to ₹5,000 per month. However, the EPS-95 National Agitation Committee has criticised this proposal, saying it is insufficient to cover the basic needs of pensioners.

Ongoing Struggles and Inadequate Pensions

Despite the 2014 government decision to set the minimum pension at ₹1,000, more than 36.6 lakh pensioners still receive less than this amount. The EPS-95 pensioners argue that this amount is not enough, which is why they continue to push for a substantial increase.

How the EPF Contribution Works

EPF members contribute 12% of their basic pay towards the provident fund, with employers matching the contribution. Of this, 8.33% goes to the EPS, while 3.67% is allocated to the EPF scheme. Pensioners believe that, given the contributions made, the pension should be significantly higher than the current ₹1,000.

The Demand for a Fairer Pension Increase

The EPS-95 National Agitation Committee has criticised the unions for pushing for a ₹5,000 minimum pension, calling it unfair and insufficient. They argue that pensioners deserve a higher pension to meet their needs and ensure their well-being in retirement.

Pensioners are hopeful that the government will make a strong move towards increasing their pensions in the upcoming budget, which could significantly improve their financial situation.

For more information into Deloitte’s expectations for the Union Budget 2025-26, click here.

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