Govt to hike EPS pension to Rs 7,500 from Rs 1,000? Know what unions demand and Parl Panel suggests
EPS Pension Hike 2025: A parliamentary standing committee has urged the Ministry of Labour to ensure that a third-party evaluation of the Employees' Pension Scheme (EPS) is completed within a fixed timeframe. The committee, chaired by Bharatiya Janata Party MP Basavaraj Bommai, has recommended that the evaluation process ideally be concluded by the end of 2025.
Hope for EPS Pensioners: Minimum Pension Under EPS-95 Likely to be Revised
Trade unions and pensioners' associations have long been urging the government to revise the pension amount under the Employees’ Pension Scheme (EPS). Despite repeated appeals, the minimum monthly pension under the EPS has remained stagnant at ₹1,000 since 2014. This amount was fixed by the Employees’ Provident Fund Organisation (EPFO) for members who have contributed to the scheme for at least 10 years.
However, there is now a renewed sense of hope for EPS pensioners. For the first time since the scheme’s inception, the EPS—officially launched in 1995 and commonly referred to as EPS-95—is undergoing a third-party evaluation by independent experts. This move could pave the way for long-awaited reforms.
A parliamentary standing committee, led by BJP MP Basavaraj Bommai, has urged the Ministry of Labour and Employment to ensure that the third-party evaluation of the scheme is completed within a fixed timeline, ideally by the end of 2025. The panel has emphasized the need to treat the matter with urgency, particularly regarding the revision of the ₹1,000 minimum monthly pension, which has not changed despite rising inflation and cost of living.
The committee's report pointed out that the cost of living has increased manifold in recent years, especially between 2014 and 2024, yet the pension amount remains unchanged. It strongly recommends that the pension amount be revised upwards to reflect current economic realities.
Third-Party Review in Progress
The labour ministry has informed the committee that the process for the first-ever third-party review of the EPS has already been initiated through a Request for Proposal (RFP), and work is currently underway. It also acknowledged that no such comprehensive evaluation has been conducted in the 30-year history of the scheme.
Previous Proposals to Raise Pension
In 2020, a proposal to increase the minimum pension to ₹2,000 was sent to the Ministry of Finance. However, it was not approved. The same proposal was again brought up during discussions ahead of the 2024–25 Union Budget.
In the run-up to the budget, a delegation of EPS-95 pensioners met with Finance Minister Nirmala Sitharaman, urging her to consider a substantial hike in the minimum pension to ₹7,500 per month, along with dearness allowance (DA) benefits to counteract inflation. Following the meeting, the EPS-95 National Agitation Committee reported that the finance minister assured them their demands would be reviewed seriously.
Conclusion - EPFO Pension Hike 2025 Latest Update
For years, employee unions and pensioners have been advocating for a pension hike under EPS. Their key demands include setting the minimum pension at ₹7,500 per month and incorporating DA benefits. With the third-party evaluation finally underway, many retirees are hopeful that the government will act in their favor and bring about much-needed changes to the EPS-95 framework.