Over 6.5 Million Pensioners Could Benefit, Govt Considering 8-Fold Pension Hike

Pension Update: The Modi government may give big good news to the country’s more than 65 lakh pensioners in the upcoming budget. The government is considering increasing the EPS-95 pension from Rs 1,000 to Rs 9,000. If this happens, the pension of more than 65 lakh retired people will increase by 800%. Trade union leaders have already reiterated the demand for increasing the minimum pension several times in meetings with the government before the budget. The unions had also requested that it be linked to dearness allowance.

What is Government Employees Pension Scheme?

The Government Employees’ Pension Scheme (EPS-1995) is a social security pension scheme funded by employer contributions and government support. Currently, a portion is contributed by the employee and a portion by the government. The government currently provides only ₹1,000 in this fund. If approved in the upcoming budget, the 800 percent increase would provide a substantial amount to retired employees. Final approval is awaited. An official notification will be issued soon for further details.

What did the trade unions propose?

According to a report, the government may increase the minimum pension under the Employees’ Pension Scheme (EPS-1995) from Rs 1,000 to Rs 9,000 per month. In recent pre-budget meetings, trade union representatives urged the Finance Ministry to implement this change for beneficiaries under the EPS-1995. They proposed that the revised minimum pension be linked to dearness allowance (DA) to ensure a cost-effective pension. Given rising costs, many believe this amount is no longer sufficient to meet basic needs.

If this proposal is approved in the upcoming budget, the minimum monthly pension for pensioners under EPS-1995 will increase to ₹9,000 – a significant increase of 800 percent, providing them with much-needed financial relief. This increase is currently under consideration. It will only be implemented after the government’s approval in the budget. Pensioners can expect a significant increase in their monthly income under EPS-1995.