If you’re living on your pension and constantly worrying about how to make ends meet, you’re not alone. For many retired employees, the ₹1,000 minimum pension under the Employees’ Pension Scheme (EPS-1995) hasn’t been enough for years. Prices have gone up, but the pension hasn’t moved an inch for over a decade.
Now, with Diwali around the corner, there’s a wave of hope — and a lot of talk about a potential EPS pension hike that could finally bring some relief.
The Big Question: Will EPS Pension Finally Be Increased?
Here’s the thing — the Central Board of Trustees (CBT), which is the main decision-making body of the Employees’ Provident Fund Organisation (EPFO), is meeting on October 13.
And everyone’s watching closely. Why? Because this meeting could bring major announcements, possibly including a revision of the minimum EPS pension, something that hasn’t happened in over 11 years.
Even though the official agenda reportedly doesn’t list “minimum pension” as a key topic, inside sources suggest it might still be discussed — especially with growing pressure from employee unions and retirees.
How Much Could the EPS Pension Increase ₹2,500 or ₹7,500
That’s the million-rupee question.
For years, pensioners and trade unions have been demanding that the minimum pension be raised from ₹1,000 to at least ₹2,500. If that happens, it would mean a 150% increase — a solid relief for thousands of retirees struggling with everyday expenses.
But some groups have gone further, asking for a ₹7,500 minimum pension, which would mean a massive 750% hike.
Now, let’s be realistic. Experts believe that such a big jump might not be financially feasible right now because the government bears the cost. Still, even a smaller hike would be a huge morale booster.
What Are the Chances of a Diwali Surprise?
Reports suggest the EPFO may announce a ₹2,500 minimum pension as early as this weekend — possibly positioning it as an early Diwali gift for pensioners.
If this happens, it’ll be the first time in more than a decade that the EPS minimum pension gets revised. Imagine that — finally getting recognition after all these years of waiting.
Quick Look: Possible Pension Hike Scenarios
| Current Pension | Proposed Pension | Increase (%) | Likely to Happen? |
|---|---|---|---|
| ₹1,000 | ₹2,500 | 150% | Highly Possible |
| ₹1,000 | ₹7,500 | 750% | Unlikely (too costly) |
A Quick Refresher: What Is EPS-1995 Pension Scheme?
The Employees’ Pension Scheme (EPS-1995) is a social security program designed to provide financial stability after retirement. It’s built on two contributions:
- 8.33% from the employer (of your basic salary)
- 1.16% from the Central Government (for salaries up to ₹15,000/month)
- Currently, the minimum pension is ₹1,000, as per government norms, with the government covering the shortfall through budgetary support.
Who Is Eligible for the EPS Pension?
- You qualify for pension benefits under EPS-1995 if you:
- Have completed at least 10 years of eligible service, and
- Reach the age of 58 years (for full pension).
- If you’re between 50–58 years, you can opt for early pension, but at a reduced rate.
Types of EPS Pensions and Benefits
Here’s a quick breakdown of what EPS-1995 offers:
- Superannuation Pension: Full pension for those retiring at 58 with 10+ years of service.
- Early Pension: Available from 50 years, but reduced by 4% for each year before 58.
- Widow Pension: 50% of the member’s pension or ₹450/month, whichever is higher.
- Children’s Pension: 25% of widow’s pension per child (up to 2 children).
- Orphan Pension: 75% of the widow’s pension (for up to 2 orphans).
- Disability Pension: Minimum ₹250/month for permanent disability during service.