Imagine working for years and years, only to live with a pension that could barely meet the minimum requirements of today’s fast and escalating inflationary days. That sounds as the reality most in the position of obtaining pension benefits from the Employees’ Pension Scheme (EPS-95) (administered by the EPFO) feel. Hence, the song goes-this minimum pension has-ish remained jammed since 2014 at Rs 1,000. As we come near the end of 2025, pensioneros and their joint-arns are still demanding a continuous rise from their prime yearly benefit, which releases sources of episodes and hopes.
Existing Scenario Of Minimum Pension
As of December 2025, the minimum monthly pension under EPS-95 is still at Rs 1,000. The Rs 1,000 figure was introduced in 2014 to protect the interests of low-end wage-contributors.
The government-backed EPS-95 ¥1,000 monthly figure guarantees a necessary blanket for low-paid workers. The government even contributes financially by directly providing extra funds in the budget and then opting in as per the normal sketch of 1.16 percent. At the start of this year or perhaps at some other time later on, the voices have continued to call for no rise to be legalized hitherto.
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Actuarial funding shortage for the EPS fund comes up in official actuarial valuations and parliamentary responses.
Grinding Calls from Pensioners And Trade Unions
Often when these pensioners and/or union associations actually raise innumerable voices in measured shouts, a common call of Rs 5,000–Rs 9,000 per mensem is made with DA every mentioned number in order to tackle inflation.
During the pre-budget consultations held on the Economic Responsibility and Budget Management Bill-2025, presenting delegations had urged for raising the pension to Rs 7,500 or its equivalent in DA, medical benefit, and insurance.
Through a presentation, the Parliamentary Standing Committee on Labour realized drastic changes seen since 2014 in the cost of living; it took these suggestions to the Minister of Finance.
Key Barriers To The Increase
EPS-95, whose retirement fund works as a DCD (defined contribution-defined benefit scheme) is on the verge of extinction because of funding deficit.
To increase minimum pension, a substantial budgetary compression is considered beforehand against all other priorities.
The Ministry of Labour seemed to consider the closure of the demands in 7 January 2025 against the common rationale in favour of excluding any changes at that point of time.
Comparison Of Pension Amounts
| Aspect | Current (2025) | Demanded by Unions | Government Pensions (Example) |
|---|---|---|---|
| Minimum Monthly Pension | Rs 1,000 | Rs 5,000–9,000 | Often higher with DA |
| Dearness Allowance | Not applicable | Included | Linked to inflation |
| Last Revised | 2014 | Pending | Periodic adjustments |
| Beneficiaries | Over 80 lakh | Same | Central/State employees |
Latest Developments In Related Areas
Though there was no move for minimum pension increase, EPFO has made strides in clearing the way for more pension applications following the Supreme Court ruling of 2022.
Of the 17.49 lakh applications for pension on actual wages, 16.65 lakh have been sorted out till now.
That was a huge help for the pension-dormant category, in the sense their pensions were credited with a lack of criteria, arrears, and many eyeballs.
A Future Look
The pensioners await reforms in 2026 that shall perhaps be revealed once the scheme’s evaluation is laid down.
Experts are proposing for the restructuring of contributions, or the wage ceiling should be augmented for attaining sustainability by way of the higher benefits.
The commitment of the government toward meeting the workers’ welfare requirements is held in the right place regarding the fiscal health considerations along with social security.
