In the run-up to the 2025 festive season, over 7.8 million EPS-95 retirees still wait for a large-scale pension hike. The present minimum pension of ₹1,000 has been barred by increasing cost of living since 2014. There are talks about it in Parliament, and trade unions are pressing hard for the increase; contrary to this, an increase to ₹7,500 plus DA is yet to be finalized. This article thus covers the recent updates, who qualifies, and what pensioners need to do.
Government Response in Parliament
In the Lok Sabha session held in July 2025, Vaiko and M. Shanmugam called for an increase in the meager EPS-95 pension to ₹7,500. The Union Minister of State for Finance, Pankaj Chaudhary, said that the demand had been made by trade unions and pensioners but had given no time frame. Currently, the government spends ₹750-1,000 crore annually to maintain the ₹1,000 minimum pension pointing the actuarial deficit in EPS-95 funds as the issue that stands in the way of immediate hikes. A fresh independent assessment recommended by a parliamentary panel consisting of Basavaraj Bommai is expected to wrap up late in 2025 to ascertain the feasibility.
Details about the Proposed Pension Hike
The hitch would raise the minimum pension to ₹7,500, constituting a 650% increase, with DA being linked to the All India Consumer Price Index (AICPI) to neutralize inflation rate (5.2% in 2024). Some argue for a minimum of ₹6,999 with DA, while others, from among them including EPS-95 National Agitation Committee (NAC), envisage ₹8,500 and medical benefits. If given approval, implementation may be by May 2026, barring any unforeseen budgetary constraints requiring a delay; beneficiaries would be pensioners, widows, and dependents.
Eligibility and Benefits
EPS-95 started in 1995 and ensures pension to employees with a minimum of 10 years service rendered in organized sectors. Such that the hike shall flow out to:
- Current pensioners linked with either their Aadhaar or bank accounts.
- Widows, widowers, and dependent children below 25.
- Newly retired post April 2025 on automatic enrollment.The increased pension deliberates on increased financial assurance for pensioners, who use it to pay for basic stuff, including healthcare and food, especially those who are low-income and practically depend only on EPS-95.
Challenges and Financial Implications
The suggested ₹7,500 pension plan, consequently, needs ₹6,000 crore per annum, thereby putting pressure on the EPFO corpus. The Government, for the moment, is looking into some sort of partial subsidy system to maintain fiscal stability while meeting the needs of the pensioners. The NAC, however, insists on free medical treatment as well, adding further complexity to the funding debates. The EPFO, without additional budget support, will end up being financially unstable in the long run, which the Government does not want to openly commit itself to.
Measures to be taken by pensioners
Understanding what pensioners must do in the event of eventuality:
- Update details: Pensioners must ensure that the Aadhaar, PAN, and bank details are up-to-date on epfindia.gov.in to facilitate the smooth disposal of payments through electronic mode.
- Keep checking for updates: Pensioners must regularly visit official portals/Website of the EPFO for any announcement, as no festive occasion-related hike has been announced till now.
- Contact EPFO: Pensioners can contact the EPFO helpline (1800-11-8005) for clarification on the status or grievances. Pensioners must avoid unofficial sources to save themselves from controversies.
Also Read: 8th Pay Commission 2025 Update, Big Pay Rise Expected For Govt Employees
