In a groundbreaking ruling, the Indian Supreme Court has given the green light to the hike in the minimum monthly pension under the Employees’ Pension Scheme (EPS) – 95. The eligible pensioners will start receiving ₹7,500 per month plus Dearness Allowance (DA) from January 1, 2025. The much-awaited decision has come as good news for over 7.8 million retired employees in India.
What Is EPS-95?
EPS-95 is the pension scheme that is under the management of the Employees’ Provident Fund Organisation (EPFO). The scheme gives monthly benefit to retirees from the organized sector who had contributed to EPF during their working time. In case the member becomes disabled or dies, the scheme also provides support to the family.
What Has Been Approved?
The Supreme Court in April 2025 approved the increase of the minimum pension from ₹1,000 to ₹7,500 with the addition of DA to beat inflation. This ruling was a result of the protests and legal appeals that lasted for years where the pensioners were demanding better post-retirement support. The new pension amount will come into force in January 2025, and the EPFO has already begun the process of updating the records of eligible retirees.
EPS-95 Pension Hike Summary
| Feature | Old Rule | New Rule (2025) |
|---|---|---|
| Minimum Monthly Pension | ₹1,000 | ₹7,500 |
| Dearness Allowance (DA) | Not applicable | Included |
| Beneficiaries | ~6 crore pensioners | 78 lakh eligible retirees |
| Effective Date | — | January 1, 2025 |
| Approval Authority | — | Supreme Court of India |
Final Thoughts
The EPS-95 pension increase is nothing short of a monumental victory for the retired employees of India. The new amount along with DA will not only provide the pensioners with better financial stability but they will also enjoy the dignity of their golden years. Retirees are advised to check their records with EPFO and if their details are not up to date, they should get them updated to receive the new pension amount from January 2025.