Millions of retirees in India are waiting for good news. The Employees’ Pension Scheme (EPS-95), which supports workers from factories and offices, might see a big jump in monthly pensions. Right now, the minimum pension is just ₹1,000, but pensioners want it raised to ₹7,500. They say this change is needed to live with dignity as living costs keep rising. The government has heard their demands, but no final decision has been made yet. Let’s look at what’s happening and why this matters.
A Long Fight for Fair Pensions
EPS-95 started in 1995 to give monthly pensions to employees after they retire. It covers people who worked at least 10 years in jobs under the Employees’ Provident Fund Organisation (EPFO). But the current minimum of ₹1,000, set in 2014, is too low to cover basic needs like food and medicine. Pensioners, led by the EPS-95 National Agitation Committee, met Finance Minister Nirmala Sitharaman on January 10, 2025, to ask for a hike to ₹7,500. They also want a dearness allowance (DA) to adjust pensions for inflation and free medical care for retirees and their spouses.
Why ₹7,500 Matters
The call for ₹7,500 comes from the rising cost of living. Inflation has made it hard for retirees to survive on ₹1,000 a month. Many pensioners, especially those without family support, struggle to pay for rent, healthcare, or even daily meals. The proposed hike would help nearly 78 lakh EPS-95 pensioners across India. Some trade unions suggest a smaller increase to ₹5,000, but pensioners say that’s not enough. The EPS-95 National Agitation Committee argues that ₹7,500 is fair to ensure a decent life for retirees.
Government’s Response and Challenges
The government is listening, but action is still pending. Finance Minister Sitharaman promised to review the demands “sympathetically” during the January meeting. A parliamentary committee, led by BJP MP Basavaraj Bommai, also pushed for a third-party review of EPS-95 by the end of 2025 to check its sustainability. This review could lead to a pension hike, but there’s a catch. Raising pensions to ₹7,500 would need a lot of money, which could strain government funds and affect other welfare programs. The EPFO also needs to ensure its funds stay stable for future pensions.
What Pensioners Can Expect
If the hike happens, it could start by May 2025, according to some reports. The new pension would include a dearness allowance tied to the All India Consumer Price Index (AICPI) to keep up with inflation. This would mean pensions rise automatically as costs go up. For now, pensioners need to keep their Universal Account Number (UAN) and KYC details updated with the EPFO. Those already getting more than ₹7,500 won’t see changes, but others below that amount could get the new minimum. The table below shows who qualifies for the hike.
| Eligibility Criteria | Details |
|---|---|
| Scheme | EPS-95 member |
| Service | Minimum 10 years |
| Current Pension | Less than ₹7,500 |
| Other Pensions | No other central government pensions |
Hope for a Better Future
The push for a ₹7,500 pension is a ray of hope for retirees. If approved, it could change lives, helping elderly people afford basics without depending on others. But pensioners are frustrated as talks drag on. Some reports even mention a possible ₹9,000 pension, though that seems less likely. For now, everyone’s eyes are on the Union Budget 2025, set for February 1, where the government might announce the hike. Pensioners are advised to check the EPFO website for updates and ensure their paperwork is ready. This could be a big step toward a secure and dignified retirement for millions.