Archive · 21 Jul 2026
Government Discusses EPS Minimum Pension Hike
The government has been asked in Parliament to increase the minimum pension under the Employees’ Pension Scheme (EPS) to Rs 7,500 per month.
Currently, the minimum pension is Rs 1,000 per month.
Pensioners and trade unions say this amount is too low to live on, especially with rising prices.
The government, however, is worried about keeping the pension fund financially healthy in the long run.
They have not made a decision yet but are considering the needs of pensioners and the sustainability of the fund.
The government has received demands to increase the minimum pension under the Employees’ Pension Scheme (EPS) to Rs 7,500 per month.
The current minimum pension is Rs 1,000 per month, which pensioners argue is inadequate for a dignified life.
The government emphasizes the need to balance social security needs with the long-term sustainability of the pension fund.
The EPS fund is financed through employer contributions of 8.33% of wages and government contributions of 1.16% of wages.
The last revision of the minimum pension was in September 2014, and no timeline has been given for a potential increase.
- Who
- Pensioners, trade unions, and the Ministry of Labour and Employment
- What
- Discussion on increasing the minimum pension under the Employees’ Pension Scheme (EPS)
- When
- July 20, 2026
- Where
- Lok Sabha, Parliament of India
- Why
- To address the demand for a higher minimum pension and ensure the financial sustainability of the pension fund
Pensioners and Trade Unions
Government
Minimum Pension Amount
Pensioners and Trade Unions
Demand a minimum monthly pension of Rs 7,500 with Dearness Allowance (DA) to meet basic household expenses.
Government
Maintains the current minimum pension of Rs 1,000 per month, citing financial sustainability concerns.
Financial Sustainability
Pensioners and Trade Unions
Argue that the current pension is inadequate and needs to be increased to reflect rising living costs.
Government
Emphasizes the need to balance social security needs with the long-term sustainability of the pension fund.
- Current Minimum Pension
- Rs 1,000 per month
- Demanded Minimum Pension
- Rs 7,500 per month
- Employer Contribution to EPS
- 8.33% of wages
- Government Contribution to EPS
- 1.16% of wages
- Last Revision of Minimum Pension
- September 1, 2014