EPFO Pension Update: A question on the minds of all PF employees is whether the EPFO will increase the minimum EPS pension amount to Rs. 7500. PF employee organisations have submitted memorandums to the government on this matter several times. Since the government implemented the EPS scheme, PF employees working in the private sector have been demanding an increase in the EPS amount.
EPFO subscribers are demanding that the minimum pension be increased from Rs. 1000 to Rs. 7500. The government has now clarified its position on whether this increase will happen or not. A strong response was given by the Ministry of Labour in the Rajya Sabha regarding this question. You can find the details of the response below.
Government’s Response in the Rajya Sabha
In the Rajya Sabha, Dr Medha Vishram Kulkarni, a BJP MP from Maharashtra, asked whether the government was aware of the ongoing demand to increase the minimum monthly pension of lakhs of EPS-95 pensioners in Maharashtra from Rs. 1,000 to Rs. 7,500, as the current amount is insufficient considering today’s inflation.
During this, she also asked whether any representations were received from employee unions and pensioners’ associations in Maharashtra during 2025, what action was taken on those demands, whether any actuarial study was conducted specifically for pensioners in Maharashtra, and whether the government has any timeline for revising the minimum pension under EPS-95. She also asked that it be ensured that the scheme remains financially sustainable.
Labour Ministry’s Surprising Response
Responding to the Rajya Sabha MP from the BJP, the Minister of State for Labour and Employment, MMsShobha Karandlaje, stated that the Employees’ Pension Scheme, 1995 i, is a defined contribution-defined benefit social security scheme. The corpus of the Employees’ Pension Fund is formed from two sources:
The employer’s contribution of 8.33% of the salary, and the Central Government’s contribution of 1.16% on salaries up to Rs. 15,000 per month. During this time, the minister also clarified that the government currently provides a minimum pension of Rs 1,000 per month to EPS pensioners through budgetary support. This support is in addition to the 1.16% wage contribution to the central government’s pension scheme, which is administered through the Employees’ Provident Fund Organisation (EPFO).
The government has received representations regarding increasing pensions.
The Ministry of Labour also acknowledged that it has received a large number of representations from various stakeholders, including trade unions and elected representatives, demanding an increase in the minimum EPS pension from the current Rs 1,000 per month.
However, the Minister of State for Labour and Employment clarified that there is no separate state-wise pension fund under EPS-95. Demands raised by pensioners in Maharashtra or any other state are examined at the national level, as the scheme is centrally pooled. This makes it clear that there will be no increase in the minimum pension amount under EPS.
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