EPS-95 Pension Increase: Will there be a Diwali Bonus?
Hey Readers, get set to get a potential festive bonus?
The EPS-95 minimum pension is reportedly getting a long overdue makeover, supposedly, ₹1,000 to ₹2,500 a month.
Why the sudden buzz? Put your dates in your calendar, the Central Board of Trustees of the EPFO is gathering in Bengaluru during the period of October 10–11 and this raise is allegedly top in the order of discussion.
The meeting will be presided over by the Labour Minister Mansukh Mandaviya, and pensioners around India are keeping a close look (and maybe even crossing fingers) as well.
Admittedly, there are groups that are dreaming big, ₹7,500 and above with DA, but ₹2,500 is perceived as a more realistic step (which is better than ₹1,000, right?).
So, is that the Diwali present you are waiting for? Keep watching, it can be that your pension gets a holiday upgrade.
Key Meeting Details: The Central Board of Trustees (CBT) of the EPFO will meet on October 10 and 11, 2025, in Bengaluru.
The meeting will be chaired by Union Labour and Employment Minister Mansukh Mandaviya. Important discussions on pension hikes and other employee benefits are expected during this session.
What’s On The Agenda?
- Minimum Pension Hike Proposal:
Expected increase from ₹1,000 to ₹2,500 per month. This is seen as a more realistic option compared to the higher demand of ₹7,500. - Digital Upgrade of EPFO:
Plans to improve the EPFO website for easier and smoother online transactions in EPF and EPS accounts. - Tech Partners:
Major companies like Infosys, TCS, and Wipro are shortlisted to handle the website revamp.
Status Of Current Pensions: Everything You Need To know
Since September 1, 2014, the minimum pension in the EPS-1995 scheme has been ₹1,000 per month. Government budgetary aid supports this amount to provide pensioners with a basic income. Although demand for a rise is increasing, there is still no official announcement or confirmation of an increase.
The government has acknowledged the demands of pensioners and unions but is still evaluating the situation. Any news is eagerly anticipated by pensioners as the next EPFO Central Board of Trustees meeting is about to consider such vital matters.
Actuarial Deficit – The Roadblock
- EPS-95 is a Defined Contribution-Defined Benefit scheme.
- Funded by:
- Employer contribution: 8.33% of wages
- Government support: 1.16% of wages (up to ₹15,000 salary)
- As per the last valuation on March 31, 2019, the scheme has an actuarial deficit, limiting room for drastic hikes.
What Is EPS-1995? A Quick Overview
In 1995, the Employees’ Provident Fund Organisation (EPFO) introduced the Employees’ Pension Scheme (EPS), a social security program that offers pension benefits to employees in the formal sector upon retirement.
The scheme guarantees the financial security of employees in their post-retirement life. Under EPS, employers make contributions of 8.33% of an employee’s wages (up to a limit of ₹15,000) to the pension fund, while the government contributes 1.16% as budgetary support. All benefits are paid from this collective fund.
The EPS is considered an essential financial safety net for millions of workers, particularly those who lack the resources to save or access other types of retirement funds.
Government’s Current Stand
By July 2025, the government was officially on record as having received multiple requests to increase the minimum pension under the EPS-95 scheme. The Minister of State in the Rajya Sabha, Sushri Shobha Karandlaje, confirmed this through a written reply.
She, however, explained that no final decision has been made yet on the proposed increase. Budgetary support in the form of a minimum monthly pension of ₹1,000 to eligible pensioners is still being provided by the government. This amount has not been increased since it was introduced on September 1, 2014, despite rising inflation and mounting pressure from pensioners.
(With Inputs From Reports)
Aishwarya is a journalism graduate with over three years of experience thriving in the buzzing corporate media world. She’s got a knack for decoding business news, tracking the twists and turns of the stock market, covering the masala of the entertainment world, and sometimes her stories come with just the right sprinkle of political commentary. She has worked with several organizations, interned at ZEE and gained professional skills at TV9 and News24, And now is learning and writing at NewsX, she’s no stranger to the newsroom hustle. Her storytelling style is fast-paced, creative, and perfectly tailored to connect with both the platform and its audience. Moto: Approaching every story from the reader’s point of view, backing up her insights with solid facts.
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