The call for a raise in the minimum monthly pension for EPS-95 retirees has resurfaced during the Winter Session of Parliament due to the increasing living expenses faced by thousands of pensioners. A recent query in Parliament on December 1, 2025, inquired about the potential escalation of the minimum pension from Rs 1,000 to Rs 7,500 within the EPFO-managed scheme.
EPS-95, which encompasses more than 80 lakh pensioners, was established in 1995 as a comprehensive social security program involving contributions and benefits. Despite demands from beneficiaries, the minimum pension has remained stagnant at Rs 1,000 per month since 2014, leading to arguments that the amount is inadequate to keep up with inflation and rising living costs.
Various pensioners’ associations have been pressing the government to revise the minimum pension to a minimum of Rs 7,500 and also reintroduce regular Dearness Allowance (DA) along with enhancing pension benefits. During a recent Lok Sabha session, questions were raised regarding the potential increase in the minimum pension, the absence of DA for EPS-95 pensioners, and strategies to fortify retirement security.
In response to these concerns, Minister of State for Labour and Employment, Shobha Karandlaje, clarified that the government currently has no plans to enhance the minimum pension to Rs 7,500. The minister cited the financial challenges faced by the EPS Fund, which, as per the latest valuation in March 2019, shows an actuarial deficit indicating insufficient contributions to cover future obligations.
The government emphasized that raising the pension without a new funding mechanism could jeopardize the stability of the fund. While affirming its dedication to providing maximum benefits, the government stressed the importance of ensuring the long-term sustainability and meeting future obligations. However, the response did not outline specific actions or timelines for implementation.