Big news may come for the middle class at the start of next year, 2026. The central government is close to taking a major decision. The minimum pension under EPS-95 may increase from ₹1,000 to ₹9,000 per month. This is the current possibility.

Right now, many discussions are happening before the budget. Representatives of the central government and trade unions are holding talks on different demands. Trade unions are asking the government to add DA to the minimum pension so the middle class can manage the rising cost of living.

Minimum Pension Likely to Increase Soon

The minimum pension under the EPS Act 1995 was fixed at ₹1,000 per month. This amount came from the employee’s contribution, the employer’s contribution, and government assistance.

Since then, inflation has increased sharply. The prices of daily essentials have gone up, and a pension of ₹1,000 is no longer enough to live on. If the Union Finance Ministry and the Prime Minister review all these factors, the EPFO may take a major decision. The minimum pension may increase from ₹1,000 to ₹9,000 per month. If this happens, the minimum pension will rise by nearly 800%.