EPS-95 Minimum Pension Likely To Rise From Rs 1,500 To Rs 2,500: EPFO Board To Decide At October 10–11 Bengaluru Meeting Ahead Of Diwali

Hopes of a hike in the minimum pension under the EPS-95 scheme are once again doing the rounds. Pensioners are anticipating a possible “Diwali gift” from the Employees’ Provident Fund Organisation (EPFO), as a crucial meeting is scheduled for October.

The Central Board of Trustees (CBT) of the EPFO is reportedly set to meet between October 10 and October 11 in Bengaluru. The meeting will be chaired by Union Labour and Employment Minister Mansukh Mandaviya and is expected to bring important decisions for pensioners and EPF account holders.

Several benefits for EPF account holders may be announced to enhance household income ahead of Diwali. This would likely stimulate household consumption during the festive season.

This will be the first meeting in seven months, and one of the key agendas is a complete revamp of the EPFO portal to provide seamless transactions for both EPF and EPS accounts. Major IT firms like Infosys, TCS, and Wipro have been shortlisted for the upgrade under EPFO 3.0.

Under the planned upgrade, financial transactions such as partial withdrawals through ATMs or UPI may become possible for EPFO members. This marks a significant shift toward digital access and convenience.

A major announcement under discussion is the hike in minimum pension under EPS-1995. Reports suggest that the pension may increase from Rs 1,500 to Rs 2,500 per month — a long-standing demand of trade unions due to rising living costs. Earlier, a High-Level Monitoring Committee had proposed Rs 2,000, but the Finance Ministry did not approve it.

Under the Narendra Modi government, the first minimum pension of Rs 1,000 per month was implemented on September 1, 2014. EPS-1995 is a Contribution-Defined Benefit Social Security Scheme. Its corpus is built from (i) 8.33 percent of wages contributed by employers, and (ii) 1.16 percent of wages contributed by the Central Government (budgetary support), up to a wage ceiling of Rs 15,000 per month.