The Employees' Provident Fund Organisation (EPFO) disbursed ₹1,852 crore to EPS-95 pensioners in April 2026, according to the retirement fund body's official announcement. The development comes at a time when pensioners across the country are intensifying their long-standing demand for a minimum monthly pension of ₹7,500 under the Employees' Pension Scheme (EPS)-95. The EPFO campaign, titled "From Reforms to Results: EPFO in Action", highlighted the scale of pension payments being made to retirees under the EPS-95 scheme, reflecting the expanding reach of India's social security network. However, the payout has also reignited debate over whether existing pension amounts are sufficient to meet rising living costs.
EPS-95 pensioners have been demanding an increase in minimum pension for years, arguing that the current pension amount received by many retirees is too low to manage essential expenses such as healthcare, rent, medicines, and food. Pensioners' associations have repeatedly urged the government to raise the minimum monthly pension to ₹7,500 along with dearness allowance benefits. They argue that inflation and rising medical costs have made the current pension structure financially unsustainable for elderly retirees. The current minimum pension under EPS-95 remains ₹1,000 per month for eligible members, with proposals suggesting an increase to ₹7,500 and linking it to inflation adjustments.
The Employees' Provident Fund (EPF) scheme operates under a 12% contribution model where both employees and employers contribute equally. According to reports from Mint, employees contribute 12% of basic salary and dearness allowance (DA), while employers make a matching contribution. However, the employer's share is strategically split between the EPF account and the Employees' Pension Scheme (EPS). Under EPS-1995, eligible EPF subscribers can receive monthly pension benefits post retirement, subject to specific service and age criteria. EPS-95 is mandatory for formal sector employees earning up to ₹15,000 per month at the time of joining establishments with 20 or more employees. Under the scheme, a portion of the employer's contribution goes towards pension benefits, with EPFO deducting pension contributions calculated at 8.33% of the employee's basic salary and dearness allowance (DA), subject to a maximum limit of ₹1,250 per month.
To qualify for EPS pension benefits, subscribers must meet specific criteria as reported by Mint. Members must be EPF scheme members and complete at least 10 years of service (this does not require continuous service). The pension becomes available when members attain 58 years of age for regular pension or 50 years of age with 10 years of eligible service for early pension, though the latter comes with reduced amounts. Certain subscribers may not be covered if their salary exceeded the ₹15,000 per month threshold at joining or if they opted for joint pension contributions. The same minimum amount of ₹1,000 per month applies for widow or widower pension, nominee pension and dependent parent pension under the scheme.
For eligible EPS members, 8.33% of the employer's 12% EPF contribution is allocated towards the pension scheme, while the remaining portion goes to the employee's EPF account. According to Mint, the minimum monthly pension amount is ₹1,000. The pension calculation follows the formula: Monthly Pension = Pensionable salary × Pensionable service / 70. For example, with a pensionable salary of ₹15,000 and 25 years of service, the monthly pension works out to approximately ₹5,357. However, the current minimum guarantee of ₹1,000 per month has become a subject of debate among pensioner associations, with proposals suggesting an increase to ₹7,500 and linking it to inflation. The monthly pension amount under EPS-95 is determined using pensionable salary and pensionable service, with the scheme providing ₹1,000 per month for member pension, ₹1,000 for widow/widower, nominee and dependent parent pension, ₹250 for children pension beneficiaries, and ₹750 for orphan pension beneficiaries.
The withdrawal process varies based on service completion as reported by Mint. For 6 months to 10 years of service, members can withdraw pension amounts as lump sum using Form 10C. For 10 years or more of service, EPS benefits are claimable only as monthly pension after attaining 58 years of age through Form 10D. Members can check their EPS balance through their EPF Passbook, which shows monthly employer contributions in the last column. The passbook is accessible through the EPF Passbook portal using UAN and password. As of early March 2026, there is still no official word on a pension hike, with discussions continuing around raising the floor amount.
