EPS-95 Pension Update 2026: In this era of inflation, where the prices of milk and vegetables are skyrocketing, millions of elderly people in the country are still forced to survive on a monthly minimum pension of just ₹1,000. EPS-95 pensioners have long been hoping for an increase in the minimum pension to ₹7,500 and its linking to dearness allowance (DA).
During a discussion on this issue in the Lok Sabha in February 2026, the government presented its position and clarified the technical and financial constraints in accepting this demand. According to the government, the minimum pension was fixed at ₹1,000 in 2014, and since then, inflation has increased manifold, but the pension amount has remained stable because it is not linked to the inflation index or the cost of living.
Main reason for not increasing the pension amount
The main reason given by the government for not increasing the pension amount is the ‘actuarial deficit’, i.e., a lack of funds. The Ministry of Labor and Employment informed Parliament that the Employees’ Pension Scheme (EPS) is a pooled fund to which employers contribute 8.33% of an employee’s salary and the government contributes 1.16%, subject to a maximum salary limit of ₹15,000.
Analysis of data as of March 31, 2019, revealed that the fund is already facing a significant financial deficit. Given this financial situation, a high-level committee has also deemed the recommendation to link pensions to dearness allowance impractical. The Ministry believes that the current funding structure is not capable of providing additional benefits to pensioners, which remains the main technical reason for the pending demand for ₹7,500.
Supreme Court Order and the Status of Higher Pensions
A ray of hope for pensioners was the Supreme Court order directing higher pensions based on higher salaries. The government has informed Parliament that the process of implementing this order is progressing rapidly and that millions of online applications have been received. However, due to data verification by employers and the complexities of paperwork, this process is taking longer than expected.
The government has cited funding limitations, but has not yet provided a specific date or timeframe for increasing the minimum amount of ₹1,000 to ₹7,500. Furthermore, the situation remains unresolved regarding demands for free medical facilities and dearness allowance.
Relief for Pensioners
While there has not yet been a significant increase in pension amounts, the government has attempted to alleviate the difficulties faced by pensioners through administrative reforms. With the implementation of the new Centralized Pension Payment System, millions of pensioners across the country will now be able to easily access their pensions from any bank branch, regardless of their location in the country.
Additionally, the EPFO is digitizing the data verification process to ensure eligible individuals receive the benefits of higher pensions as quickly as possible. For now, the completion of this process alone will offer some relief to seniors, while the fight to increase the minimum pension continues.
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Vikram Singh
Author at TimesBull covering breaking news and current affairs.
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