Pension Hike: State Government Increases Pension Amount, Check the New Rupee Amount

Pension Hike: The Rajasthan government has made the decision to raise the social security pension amount by Rs. In this context, the Department of Social Justice and Empowerment has put out an order. As per the order, the monthly pension for old age, widows or single women, disabled individuals, and small and marginal farmers has been bumped up from 1250 to 1300.

Social Justice and Empowerment Minister Avinash Gehlot mentioned that this new amount will take effect from January 1, and meetings will kick off this month (February). He noted that this change will benefit 91 lakh pensioners across the state. The minister also shared that the pension increase is part of the Rajasthan Minimum Income Guarantee Act, 2023. This rise in pension will add an extra financial load of about Rs 550 crore on the state government each year.

Additional financial burden of Rs 550 crore

Social Justice and Empowerment Minister Avinash Gehlot stated that the pension increase will impose an additional financial burden of approximately Rs 550 crore per year on the state government, but the government is taking this decision in keeping with its commitment to public welfare. He said this step will strengthen the spirit of Antyodaya.

Gehlot stated that the increased amount will be effective January 1, 2026, and will be payable beginning February 2026. This decision will directly benefit approximately 9.1 million pensioners in the state. The government will spend approximately Rs 1,150 crore per month on this initiative. He stated that the state government, led by Chief Minister Bhajan Lal, is committed to ensuring a dignified life for the vulnerable and needy sections of society. This increase in pension amounts will further strengthen social security and provide financial support to beneficiaries.

EPFO Pension

Labor unions have once again intensified their demand to increase the minimum pension under the EPS-95 scheme to Rs 9,000 per month. But is such a significant increase from the current Rs 1,000 possible? The issue has resurfaced in Parliament and the country’s highest court, bringing back into focus the pension calculations under the Employees’ Pension Scheme (EPS) 1995, administered by the Employees’ Provident Fund Organization (EPFO).

Demand for minimum pension of Rs 9,000

In a recent unstarred question in the Lok Sabha, MP Dr Kirsan Namdeo asked whether several trade unions, including the Bharatiya Mazdoor Sangh (BMS), have demanded that the government increase the minimum EPS pension to Rs 9,000. Responding to the House, Minister of State for Labour and Employment, Ms. Shobha Karandlaje, confirmed that representations have been received from trade unions and public representatives seeking an increase from the current Rs 1,000 per month. However, the government did not provide a timeline for the increase.

The Minister clarified that EPS-95 is a pension scheme in which money is deposited based on a fixed percentage of the employee’s salary and pension is paid accordingly. The employer i.e. the company contributes 8.33% of the salary to this pension fund, while the central government contributes 1.16% of the salary up to a maximum limit of Rs 15,000. Apart from this, the government is also ensuring a minimum pension of Rs 1,000 per month by providing separate assistance from the budget. Currently, there are more than 47 lakh active pensioners who are getting a pension of less than Rs 9,000 per month, hence the demand for increasing the pension has remained a constant social and political issue.