EPS-95 retirees didn’t imagine retirement like this. Decades of factory floors, offices, and physical labour were supposed to lead to stability—not a daily calculation of which bill can be postponed.
As 2026 approaches, expectations are rising again. Pensioners’ unions are louder. Court pressure exists. Political promises keep surfacing. But the government’s position remains cautious.
So let’s break this down properly.
What EPS-95 Really Is (and Why Pensions Stay Low)
The Employees’ Pension Scheme (EPS-95) was built with strict limits—and those limits are now hurting retirees.
Here’s how the system works today:
| Factor | Current Rule | What It Means for You |
|---|---|---|
| Pensionable Salary | Average of last 60 months’ Basic + DA, capped at ₹15,000 | Ignores post-2014 wage growth |
| Contribution | 8.33% from employer + 1.16% govt support | Low inflow into pension fund |
| Service Years | Max 35 years (+2 bonus if over 20 years) | Short service = very low pension |
| Formula | (Salary × Service) ÷ 70 | Keeps payouts modest |
| Minimum Pension | ₹1,000/month | Fixed amount, no inflation link |
That ₹1,000 floor survives only because the government directly funds it from the budget. Without that support, pensions would be even lower.
Why Pensioners Are Demanding ₹7,500–₹9,000
The anger isn’t political—it’s practical.
What ₹1,000 meant in 2014 is very different today. Food prices alone have doubled in many states. Medical costs don’t care about pension formulas.
Pensioners’ bodies like the EPS-95 National Agitation Committee and All Pensioners Retired Persons’ Association are demanding:
- Minimum pension of ₹7,500 per month
- Dearness Allowance (DA) linkage
- Revised pension calculation tables
- Better exit benefits for short-service workers
Their argument is simple: a pension below survival level isn’t social security.
Government’s Stand Going Into 2026
This is where things slow down.
In recent written replies in Parliament, the Ministry of Labour has clearly said:
- The EPS fund faces a serious actuarial deficit
- Increasing minimum pension sharply could destabilise the scheme
- Even the current ₹1,000 pension depends on annual budget support
Officials estimate long-term liabilities of over ₹2.5 lakh crore if pensions are raised without reforming contributions.
In short:
The government says “we want to help, but the money has to come from somewhere.”
So… Will EPS-95 Pension Increase in 2026?
Here’s the realistic answer:
- Arrears payments have already begun in 2025
- Administrative reforms are improving payment speed
- Minimum pension hike is still undecided
- No official approval yet for ₹7,500 or ₹9,000
If any hike comes in 2026, experts expect:
- A partial increase, not a full jump
- Possibly means-tested or phased implementation
- Or continued dependence on budget support, not DA linkage
What Pensioners Should Do Now
Hope matters—but paperwork matters more.
- Check EPS details on the EPFO portal
- Ensure joint option, service records, and bank KYC are correct
- Track parliamentary updates during Budget 2026 and Labour Ministry statements
- Stay connected with pensioners’ associations—they’re driving this fight
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