Archive · 31 Jan 2026
Government Clarifies EPS Pension Hike Amid Inflation Concerns
The Indian government has said that there is no immediate plan to increase the minimum pension for people under the Employees' Pension Scheme (EPS) from Rs 1,000 to Rs 7,500.
This was in response to a question in the Rajya Sabha by an MP who was concerned about the low pension amount given the rising cost of living.
The government explained that the pension fund is carefully managed to ensure it can pay pensions in the long term.
They also mentioned that they receive requests to increase the pension but need to consider the financial health of the fund before making any changes.
Additionally, there is a discussion about raising the wage limit for mandatory contributions to the pension fund, which could help more people get pension benefits in the future.
The government has no immediate plan to increase the minimum EPS pension from Rs 1,000 to Rs 7,500.
The decision to hike the pension is pending due to concerns about the long-term financial sustainability of the pension fund.
The EPS-95 pension fund is built from employer contributions of 8.33% of wages and a 1.16% contribution by the Central Government on wages up to Rs 15,000 per month.
The government conducts annual valuations of the pension fund to assess its sustainability.
There is a proposal to raise the wage ceiling for mandatory EPF and EPS contributions from Rs 15,000 to Rs 25,000 per month.
- Who
- Government of India, Labour Ministry, Rajya Sabha MP Dr Medha Vishram Kulkarni, EPS-95 pensioners, labour unions
- What
- Clarification on the potential hike in the minimum EPS pension and the sustainability of the pension fund
- When
- During a Rajya Sabha session, with ongoing demands for several years
- Where
- India, specifically addressing concerns from Maharashtra pensioners
- Why
- To address the growing hardship faced by EPS-95 pensioners amid rising inflation and to ensure the financial sustainability of the pension fund
- Current Minimum Pension
- Rs 1,000 per month
- Proposed Minimum Pension
- Rs 7,500 per month
- Employer Contribution
- 8.33% of wages
- Government Contribution
- 1.16% of wages up to Rs 15,000
- Fund Valuation
- Annual, as mandated under EPS, 1995
- Current Wage Ceiling
- Rs 15,000 per month
- Proposed Wage Ceiling
- Rs 25,000 per month
