In response to mounting demands from trade unions and public representatives, the Ministry of Labour and Employment has acknowledged ongoing discussions to increase the minimum monthly pension under the Employees’ Pension Scheme (EPS), 1995, which currently stands at ₹1000.
The issue was addressed by Minister of State for Labour and Employment, Sushri Shobha Karandlaje, in a written reply to the Rajya Sabha on July 24, 2025.
🧾 What Is EPS-1995?
EPS-1995 is a “Defined Contribution–Defined Benefit” social security scheme managed by the Employees’ Provident Fund Organisation (EPFO).
The pension corpus is built from:
- 8.33% of employee wages contributed by the employer
- 1.16% of wages (up to ₹15,000/month) contributed by the Central Government as budgetary support
📉 Current Challenges
As per the latest actuarial valuation dated March 31, 2019, the fund has shown an actuarial deficit, raising concerns about the long-term sustainability of increasing pension benefits without further reforms or funding.
Despite this, the government has continued to ensure a minimum pension of ₹1000 per month, over and above the regular 1.16% budgetary support.
📢 Stakeholder Demands
- Trade unions and public representatives have long demanded an increase in the minimum EPS pension, arguing that ₹1000 is insufficient for pensioners’ basic needs.
- Various memoranda and representations have urged the Centre to raise this amount significantly, in line with rising living costs.
🏛️ Government’s Position
The government has reiterated that any enhancement to pension amounts must be:
- Financially viable
- Sustainable in the long term
- Informed by actuarial evaluations and fund performance
The matter is under active consideration, though no official increase has been announced yet.
🔍 Looking Ahead
While pensioners await relief, any changes to EPS-1995 minimum pensions will likely hinge on:
- Future valuation reports
- Parliamentary consensus
- Budgetary provisions
Conclusion:
The government’s acknowledgment of the issue offers hope for pensioners. However, given the actuarial constraints, any hike will require careful financial planning and systemic adjustments to ensure the integrity of the EPS-95 scheme.