Winter Session 2025: Government Clarifies EPS-95 Minimum Pension Will Stay ₹1,000

During the Winter Session 2025, the government confirmed that the minimum pension under the Employees’ Pension Scheme (EPS) 1995 will remain at ₹1,000 per month. Despite repeated demands from pensioners for an increase, the government cited financial constraints in the fund as the reason for not raising the minimum payout.

How Does EPS-95 Function?

EPS-95 is a social security scheme for organised sector workers, operating as a defined contribution–defined benefit plan. Employers contribute 8.33% of employees’ wages, while the central government adds 1.16% on wages up to ₹15,000 per month. These contributions accumulate to form the pension corpus, which funds both current and future pensions. An actuarial review has shown a deficit in the fund, limiting the government’s ability to increase pension amounts.

What are the Current Pension Limits?

The minimum pension under EPS-95 remains ₹1,000, and the maximum pension is ₹7,500. While pensioners have long requested an increase to keep pace with rising costs, the government has indicated that no hike is planned at this stage due to the fund’s financial position.

Higher Pension Benefits 

The Employees’ Provident Fund Organisation (EPFO) has been actively processing applications for higher pension benefits. Most applications have been reviewed and revised Pension Payment Orders have been issued to eligible retired members. Some applicants were found ineligible due to incomplete contributions, but the majority received their updated pensions.  

Pension Calculation

EPS pensions are calculated on a pro-rata basis. This ensures fairness between employees who contributed under the wage ceiling and those with higher contributions. The calculation method has been upheld by the Supreme Court, maintaining parity across all beneficiaries.

Read more: Razorpay Secures RBI Cross-Border Payment Licence to Expand Global Transactions.

Conclusion

The Winter Session 2025 clarified that while EPS-95 provides an important safety net for retired workers and their families, the minimum pension will remain ₹1,000 for now. Members can still apply for higher pensions if eligible, but any major increase in the minimum or maximum pension is unlikely in the near future.  
 
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