The Employees’ Provident Fund Organisation (EPFO) is mulling over a considerable alteration to the Employees’ Pension Scheme (EPS-95) that might bring the lowest monthly pension up from the current ₹1,000 to ₹2,500. The Ministry of Labour and Employment is currently reviewing this proposal which, if approved, will benefit financially more than 6 million pensioners who depend on EPFO for their post-retirement income.
What Is EPS-95 and Who Benefits?
EPS-95, or Employee Pension Scheme, is a pension plan introduced in 1995 that has been offered to the employees who were contributing to EPF during the times of their employment. To be eligible, a worker has to complete a minimum of ten years of service under the scheme. The pension amount is determined by the salary drawn by the employee and the number of years of service. Presently, the least amount of pension offered is ₹1,000 a month, which is considered by many retirees as inadequate for their very basic living needs.
Why the Pension Hike Is Needed
The amount of current pension is indeed very much lesser than that of a decent retirement living. Trade unions and pensioners’ associations are not stopping their demands for a revision of the pension amount for years now. The suggested hike to ₹2,500 would more than double the present payout and facilitate the retiree’s monthly needs to be met more comfortably.
Government Review and Implementation
The proposal made by the EPFO Board of Trustees has been passed on to the Ministry of Labour and Employment. The increase may lead to the need for extra allocation from the central government and changes in the EPS rules. Once the new pension rate is approved, its rollout could happen in phases starting from early 2026, with low-income pensioners being the first in the queue.
Final Thoughts
The minimum pension proposal of ₹2,500 under the EPS-95 scheme is indeed a great step ahead in the direction of social welfare and the assurance of a dignified retirement. It is believed that the lives of millions of pensioners across India will be transformed to a great extent if this is brought into practice. In the meantime, retired individuals must ensure that their service records are updated and they remain in the know of the official EPFO communications to be able to take advantage of the upcoming benefits.
