Picture retiring after a lifetime of toil in India’s private sector, then finding out your monthly pension is just enough to pay for basic medical needs or just to buy groceries. Over 8 million EPS-95 pensioners have been living through this nightmare since 2014, as the minimum pension has been frozen at Rs 1,000 despite the skyrocketing inflation rates.
What is EPS-95 Scheme?
The Employees’ Pension Scheme (EPS-95), which was the brainchild of Employees’ Provident Fund Organisation (EPFO) and introduced in 1995, secures the retirement of organized sector workers.
Companies share 8.33% of the employee’s pay (maximum Rs 15,000) with the pension fund and the government gives an additional 1.16% as a contribution.
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Upon reaching 58 years and having rendered 10 years of service, the pension will be for life and will be paid monthly.
Current Minimum Pension Status
The minimum monthly pension under EPS-95 is still Rs 1,000 as at December 2025.
The last time this amount was revised was in September 2014.
One difference with the pensions of central government employees is that there is no dearness allowance (DA) given.
Demands from Pensioners
The pensioners’ associations and trade unions have been pushing for at least Rs 7,500 to be the new minimum pension, and that is still very much a demand.
They have also asked for the introduction of DA along with the minimum pension so that the pension has some inflation protection, as well as the provision of medical benefits for retirees and their spouses.
The year 2025 saw protests all over the country including fasts and marches, which made very loud statements about the unsuitability of Rs. 1,000 in terms of its purchasing power in today’s economy.
Government’s Latest Position
In a statement in Parliament on December 1, 2025, the Minister of State for Labour, Shobha Karandlaje, said the demand to increase the minimum pension to Rs 7,500 has not been put forward.
Due to the EPS fund showing an actuarial deficit according to the 2019 valuation, it will be difficult to give increases in pensions without a restructuring of the system.
The Government has no plans for a DA because of the nature of the scheme.
Progress on Higher Pension Option
Under the Supreme Court’s 2022 ruling, which permitted contributions on actual salary (over the Rs 15,000 cap), EPFO had processed almost 99% of 17.49 lakh applications by November 2025.
The payment of arrears commenced in July 2025 through a centralized system, and re-engaging with those who received pensions at a higher rate.
This group consists of employees who made a joint choice with their employers to subscribe to the pension scheme.
Pension Comparison Table
| Category | Current EPS-95 Minimum | Demanded Minimum | Central Govt Pension Example (Basic) |
|---|---|---|---|
| Monthly Amount | Rs 1,000 | Rs 7,500+ | Rs 9,000+ (with DA) |
| DA Included | No | Yes | Yes |
| Last Revision | 2014 | N/A | Regular |
| Beneficiaries | Over 80 lakh | Same | Govt employees |
| Fund Status | Actuarial deficit | Requires reform | Budget supported |
