The minimum EPS-95 pension remains ₹1,000 per month despite pensioners demanding an increase to ₹7,500. According to reports from Mint, Lok Sabha MP Ramvir Singh Bidhuri raised the issue on 10 August, asking whether the government plans to increase the minimum EPS-1995 pension from ₹1,000 to ₹7,500 per month. Minister of State for Labour and Employment Shobha Karandlaje responded that the government is currently providing a minimum pension of ₹1,000 per month to EPS-1995 pensioners through budgetary support, but did not announce a hike to ₹7,500. As per Wealth-Economic Times, the EPS-95 minimum pension has remained frozen at ₹1,000 per month since 2014, with pensioner organisations and unions demanding the minimum be raised to ₹7,500 per month, but no official gazette notification from the Labour Ministry or EPFO has been issued as of mid-2025.
The government has officially replaced EPS 1995 with EPS 2026, with Minister Karandlaje recently clarifying in Parliament that beneficiaries covered under the Employees' Family Pension Scheme (EFPS), 1971 and EPS 1995 will continue to receive their benefits under the new EPS 2026 scheme. This transition ensures that existing EPS-95 pensioners will not lose their current entitlements, though the new scheme may introduce different benefit structures and calculation methods. The continuity provision addresses concerns about disruption to pension payments for millions of beneficiaries who have been receiving EPS-95 benefits for decades.
The higher-pension process stems from the Supreme Court's November 2022 judgment, which upheld the right of eligible employees to opt for pension contributions based on higher wages, subject to applicable conditions. The Union government has detailed four major steps implemented by the Employees' Provident Fund Organisation (EPFO) to resolve pending higher-pension applications. Online facility for joint option submissions was introduced allowing eligible members and pensioners to submit applications for validation of Joint Options through the EPFO platform. However, filing an application does not mean automatic approval - applications must undergo verification and prescribed formalities before enhanced pension amounts can be calculated and released. The government has not announced a fresh nationwide deadline for settling all pending higher-pension applications, though EPFO continues monitoring cases and pushing regional offices to improve processing.
The government's response cited pension fund sustainability as a key concern. The Employees' Pension Fund corpus comprises an employer contribution of 8.33% of wages and a Central government contribution of 1.16% of wages, subject to the ₹15,000 monthly wage ceiling. The government stated that all benefits under the scheme are paid from these accumulations and that the fund is valued annually as mandated under EPS-1995. The government provides the ₹1,000 minimum pension through additional budgetary support over and above the 1.16% contribution made by the Centre towards EPS. According to Wealth-Economic Times, the EPS pension formula is based on years of pensionable service and average salary capped at ₹15,000/month, meaning most low-wage workers receive amounts far below even the current ₹1,000 floor without a government top-up.
According to Mint reports, as of 31 March 2026, 85,84,604 pensioners were receiving monthly pensions under EPS. The total pension amount disbursed under the scheme up to 31 March 2026 stood at ₹15,819.28 crore. Under the ₹15,000 monthly wage ceiling, the maximum monthly EPS contribution works out to about ₹1,250, based on the 8.33% employer contribution. The government also provided an update on pension on higher wages, with 1,49,806 Pension Payment Orders issued to retired applicants following the Supreme Court's judgment. The EPS-95 National Agitation Committee staged a protest in New Delhi on August 5, 2026, demanding that the minimum pension be raised to ₹7,500. Pensioners have argued that the existing ₹1,000 monthly pension is inadequate amid the rising cost of living.
