EPFO Update: No Immediate Plan to Raise Minimum EPS Pension to ₹7,500, Says Govt

The Modi government has once again stated that there is no immediate plan to increase the minimum pension under the Employees’ Pension Scheme (EPS), 1995 from the current ₹1,000 to ₹7,500, despite rising inflation and repeated demands from pensioners.

This clarification was given in the Rajya Sabha in response to a question raised by MP Dr Medha Vishram Kulkarni.

What Was Asked in Parliament

The MP highlighted the financial difficulties faced by EPS-95 pensioners, especially in states like Maharashtra, and asked whether the government was considering a pension hike. She also sought details on representations received, any actuarial studies conducted, and a possible timeline for revising the pension amount.

How the EPS Scheme Works

Replying to the query, Minister of State for Labour and Employment Shobha Karandlaje explained that EPS is a defined contribution–defined benefit scheme.

• The pension fund is built from:
  • 8.33% employer contribution
  • 1.16% contribution by the Central Government on wages up to ₹15,000
• All pensions are paid from this pooled fund.
• The government currently supports a minimum pension of ₹1,000 per month through budgetary allocation.

Focus on Fund Sustainability

The minister said the EPS fund is valued every year to assess whether future contributions will be enough to meet pension payouts. Any increase in minimum pension must consider the long-term financial health of the fund.

She added that while the government remains committed to social security, decisions are taken cautiously to balance future liabilities.

No State-Wise Pension Fund

The Labour Ministry confirmed that representations from unions and pensioners have been received. However, it clarified that EPS does not operate on a state-wise basis. All demands are examined at the national level since the fund is centrally managed.

Long-Standing Demand by Pensioners

Labour unions and pensioners’ groups across India have been demanding a revision in the minimum pension for years, arguing that ₹1,000 is inadequate given inflation and rising medical costs. The amount was last revised over a decade ago.

Despite this, the government has consistently said that any hike must be backed by actuarial assessments.

Read More: EPFO 3.0 Explained: New Portal, AI Language Tools And UPI-Based PF Withdrawals.

Related EPFO Reform Under Discussion

Separately, the government is also considering raising the wage ceiling for mandatory EPF and EPS contributions from ₹15,000 to ₹25,000. If implemented, this could expand social security coverage and strengthen pension funding in the long run.

Conclusion

While the demand to raise the minimum EPS pension to ₹7,500 has been acknowledged, the government has made it clear that there is no fixed timeline for such a move. Any decision will depend on actuarial studies and the overall sustainability of the pension fund, rather than immediate inflation pressures.

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