EPFO Minimum Pension to Be ₹10,000? Government Announces New Date

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As time goes by, everyone is waiting for EPFO ​​Pension. When will the minimum pension amount increase? Will it increase at all? The question arises. Currently, everyone gets a pension of only Rs 1,000. But in the current inflationary market, Rs 1,000 does not do anything, so everyone has demanded that this pension amount be increased to a minimum of Rs 9,000. Will the government accept this demand? Let’s find out in detail.

Will the government increase the minimum pension by Rs 10,000?

The labor unions have once again strengthened their demand for a minimum pension of Rs 9,000 per month under the EPS-95 scheme. This issue has come up again in Parliament and the Supreme Court of the country, due to which the issue of calculating pension under the Employees’ Pension Scheme (EPS) 1995 managed by the Employees’ Provident Fund Organization (EPFO) has come up again. A question was also raised in the Lok Sabha recently whether several trade unions, including the Bharatiya Mazdoor Sangh (BMS), have demanded an increase in the minimum EPS pension by Rs 9,000 from the government? Replying to Parliament, Minister of State for Labour and Employment Smt Shobha Karandlaje confirmed that there have been requests from trade unions and public representatives demanding an increase from the current monthly pension of Rs 1,000 to Rs 9,000. However, the government has not given any time frame for this increase.

What is the government’s position?

The minister clarified that EPS-95 is a pension scheme where money is deposited based on a certain 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. In addition, the government is 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, so the demand for a pension increase has become a permanent social and political problem. It is not easy to increase the pension from Rs 1,000 to Rs 9,000 directly, as it will increase by almost nine times. The pension fund in the EPS scheme is created from a certain percentage of contributions and is calculated every year on the basis of ensuring long-term continuity.

If the pension is increased by this much, the fund will incur significant expenses, which will make future payments difficult. The government said that before taking any decision, it is important to consider the strength of the fund and future liabilities. This is why the wage ceiling also becomes very important, as it is based on which the contribution and pension calculation are decided.

In early 2026, the Supreme Court directed the central government to review the current wage ceiling of Rs 15,000 within four months and consider increasing it, if necessary. This wage ceiling has been effective since September 1, 2014, when it was increased from Rs 6,500 to Rs 15,000. The previous ceiling of Rs 6,500 was effective from June 1, 2001. The court’s order raised hopes that if the wage ceiling is increased, the amount of pension may also increase automatically, as pension is directly linked to pensionable salary.

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