Retired Employees Could Soon See Major Pension Boost Under Employees’ Pension Scheme as Government Faces Renewed Pressure
NEW DELHI — After years of persistent demands and growing concerns over the rising cost of living, a major shift may be on the horizon for pensioners under the Employees’ Pension Scheme (EPS-95). A Parliamentary Standing Committee has urged the Ministry of Labor and Employment to take immediate steps to increase the minimum pension from ₹1,000 to potentially as high as ₹7,500 per month, a move that could benefit over 6 million EPS pensioners across India.
Why the Pension Hike Is Back in Focus
Launched in 1995, the EPS aims to provide financial security to workers post-retirement. However, the minimum monthly pension has remained stagnant at ₹1,000 since 2014, despite a significant rise in inflation and living expenses. The Standing Committee on Labor, Textiles, and Skill Development, chaired by BJP MP Basavaraj Bommai, has now recommended a comprehensive third-party evaluation of the scheme — the first in its 30-year history.
The committee has called on the government to complete this evaluation by the end of 2025, citing the need to assess the scheme’s effectiveness and sustainability in light of today’s economic realities.
Urgent Need for Pension Increase
The committee’s report notes:
“There is a strong need to seriously consider increasing the pension amount, given the steep rise in the cost of living between 2014 and 2024.”
In response, the Ministry of Labor acknowledged that a proposal to raise the minimum pension to ₹2,000 was submitted to the Finance Ministry in 2020 but was not approved at the time. However, renewed pressure from retired employee associations has brought the issue back into the spotlight.
Demand for ₹7,500 Monthly Pension Gains Ground
Ahead of the 2024–25 Union Budget, a delegation from the EPS-95 National Movement Committee met Finance Minister Nirmala Sitharaman, pushing for a minimum pension of ₹7,500 along with Dearness Allowance (DA) benefits. According to the committee, the Finance Minister gave assurance that the government would consider the demand seriously.
The push for a ₹7,500 pension is supported by numerous employee unions, arguing that such an amount is necessary to ensure a dignified post-retirement life for low-income and lower-middle-class retirees who depend solely on EPS benefits.
What Happens Next?
-
Third-party audit of EPS-95 to be completed by end of 2025
-
Ongoing review of pension adequacy vs cost-of-living index
-
Possibility of pension hike discussed in upcoming budgetary sessions
-
Continued advocacy by pensioner associations and trade unions
While no official announcement has yet been made, the ongoing political and public momentum suggests a policy decision may be in the pipeline — one that could drastically improve the financial future of millions of pensioners.
Conclusion
If approved, this move will mark one of the most significant updates in India’s social security landscape. Whether the pension rises to ₹2,000, ₹7,500, or somewhere in between, one thing is certain: the issue is finally receiving the serious policy attention it deserves.
Author Profile
- My name is Ganpat Singh Choughan. I am an experienced content writer with 7 years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
Latest entries
Politics, NationalFebruary 28, 2026Sandeep Dikshit Comments on Kejriwals Release in Liquor Policy Case
Politics, NationalFebruary 28, 2026Rahul Gandhi Urges Finance Minister to Increase ECHS Funding and Remove Tax on Disability Pension
Politics, NationalFebruary 28, 2026Kiren Rijiju Responds to Kejriwal and Sisodias Acquittal in CBI Case
National NewsFebruary 28, 2026LPG Cylinder Explosion Injures 11 in Lauria Market, Bihar
Follow Us on WhatsApp
Leave a Comment