EPFO Pension Hike 2025: for many years, lakhs of EPS-95 pensioners across India have been raising same question , will minimum EPFO pension ever increase from ₹1000 to ₹7500? With rising inflation, medical expenses, and essential daily costs, pensioners are facing financial pressure. Naturally, when this issue reached Parliament again, people hoped government might finally give a positive update.
But answer from the Central Government has once again made situation clear , issue is important, but also extremely complex.
What Question Was Raised in Parliament?
MP Balya Mama Suresh Gopinath Matre asked government whether there is any proposal to increase the minimum EPS pension to ₹7500. This has been the long-standing demand of pensioner associations and unions across country.
Government’s Clear Reply , No Proposal Yet
The Minister of State for Labour & Employment informed Parliament that ,
- There is currently no proposal to increase minimum pension to ₹7500.
- Government has not approved any enhancement so far.
This response has disappointed many pensioners who were expecting a major announcement.
Why Can’t the Pension Be Increased?
The government highlighted a major concern, actuarial deficit, meaning EPS fund does not have enough money for future pension requirements.
How EPS funding works ?
- 8.33% contribution from employer.
- 1.16% share from the Central Government.
- This money is used to pay pensions in future.
- But the current contributions are not enough to support a higher pension amount.
- Without solving this fund shortage, increasing pension is not financially possible.
What Pensioners Are Demanding
EPS pensioners say that , today’s expenses cannot be managed with just ₹1000 per month. They are demanding a pension of ₹7500 to ₹9000 .
Why DA Is Not Given in EPS?
The government clarified , eps is a contribution-based scheme, not a salary-based pension.
Therefore, DA is not included in its structure.
Unlike government pensions, EPS does not offer inflation-linked increments.
Also, current minimum pension of ₹1000 is funded through additional budget support from government. Increasing this amount would require significantly higher budget allocation.
