Ahead Of Budget, Govt Weighs Raising EPS-95 Pension To Rs 9,000 From Rs 1,000; 800% Jump For 65 Lakh+ Retirees

Good news for pensioners: the government may raise the minimum pension under the Employees’ Pension Scheme (EPS-1995) from Rs 1,000 to Rs 9,000 per month.

In recent pre-budget talks, representatives of trade-unions have urged the Ministry of Finance to enact this change for beneficiaries under EPS-1995.

They have proposed that the revised minimum pension should also be tied to the dearness allowance (DA), to ensure that pensions reflect rising living costs.

EPS-1995 is a defined-contribution/benefit social security scheme. Under it, the pension fund is formed through employer contributions and supplemented by government budgetary support — and it presently guarantees a minimum pension of Rs 1,000 per month.

The Rs 1,000 minimum pension has remained unchanged since the inception of EPS-1995. Given inflation and rising costs, many contend that this level no longer suffices to meet basic needs.

If approved in the upcoming budget, pensioners under EPS-1995 would see their minimum monthly pension rise to Rs 9,000 — a significant jump of 800 percent, offering much-needed financial relief.

The increase is still under consideration. Its implementation depends on government approval in the budget. If accepted, pensioners can expect a major boost in their monthly income under EPS-1995.