EPS-95 Pension Hike From Rs 1,000 To Rs Rs 7,500: Will Govt Increase Minimum Pension? Labour Ministry Responds In Lok Sabha

MP Balya Mama Suresh Gopinath Mhatre raised unstarred question in the Lok Sabha on 1 December 2025, seeking response from the finance ministry on whether the Government is contemplating to increase the minimum pension under EPS-95 from 1,000 to 7,500 per month and if not, the reasons therefor.

Shobha Karandlaje, Minister of State for Labour and Employment, in a written response in the Lok Sabha did not directly say that the government was contemplating any move to raise pension to Rs 7,500. 

She instead highlighted that the government is providing a minimum pension of Rs 1,000 per month to the pensioners under the EPS 1995 by providing budgetary support, and in addition to the budgetary support of 1.16 percent of wages provided annually towards EPS to Employees’ Provident Fund Organisation (EPFO). 

The minister added that The corpus of the Employees’ Pension Fund is made up of  contribution by the employer at 8.33 percent of wages, and contribution from central government through budgetary support at 1.16 percent of wages up to Rs.15,000 per month.

The fund is valued annually as mandated under paragraph 32 of the EPS 1995— and as per the valuation of the fund as on March 31, 2019, there is an actuarial deficit. The valuation thus implying that the demands to hike minimum pension from Rs 1000 to Rs 7,500 will not be a reality at the moment.

The different categories of pension and withdrawal benefits available under EPS are as under:

- Member Pension upon superannuation at 58 years of age. - Early Member Pension from age of 50 years. - Disability Pension on permanent and total disablement during service. - Widow/Widower Pension on death of Member or Pensioner. - Children Pension for 2 children at a time till the age of 25 years on death of the member. - Orphan Pension to 2 orphans at a time till the age of 25 years on death of a member when there is no spouse or on death of spouse. - Disabled Children/Orphan Pension for the entire life of the disabled child/orphan. - Nominee Pension on death of member and paid for life to a person duly nominated by the member in case there is no family as defined under EPS, 1995. - Pension to dependent father/mother upon death of a member provided there is no family or nominee of the member. Withdrawal benefit on exit from service or on superannuation provided member has not rendered service eligible for pension.