EPFO Pension Update: Millions of EPS-95 pensioners across the country have been asking the same question for years: will their minimum pension increase from ₹1,000 to ₹7,500? Inflation is rising, making everything from medicines to household expenses more expensive, yet pensions haven't been increased for a long time. When the issue was raised again in Parliament, hopes once again rose that the government might announce a significant decision this time.

But the response from the central government once again made it clear that this issue is as important as it is complex. In simple terms, learn what the government said about increasing pensions...

In the Lok Sabha, MP Balya Mama Suresh Gopinath Matre asked the government if there was any proposal to increase the minimum pension to ₹7,500. This has been a demand from pensioners and their unions for years.

The government stated that there is no proposal yet.
The Minister of State for Labor and Employment clearly stated that no proposal to increase the pension to ₹7,500 is currently under consideration. This means that the government has not yet approved this increase.

Fund Shortage (Actuarial Deficit)
The government stated that there is a financial shortfall in the EPS fund. Simply put, the current contributions are not sufficient to meet future pension demands. Without addressing this shortfall, increasing pensions is difficult.

EPS pensions consist of an employer contribution of 8.33 percent and a central government contribution of 1.16 percent. Future pensions are paid based on these contributions, so the lack of funds is directly hindering the pension increase.
What are the pensioners' demands?
Thousands of pensioners say that ₹1,000 does not cover current expenses, so the pension should be at least ₹7,500 to ₹9,000, and they should also receive DA. Numerous demonstrations and memorandums of demands have been submitted for this purpose.

Government's Argument for Not Receiving DA

The government stated that EPS is a contribution-based scheme, not salary-based, and therefore does not include a DA structure. This is why EPS pensioners do not receive dearness allowance like regular government pensions.

It should be noted that the government provides additional budgetary support to provide a minimum pension of ₹1,000. This means that this amount is not directly funded but supported by the government, and increasing it will require additional budgetary support.

The government stated that it understands the problems faced by pensioners and is striving to provide more benefits, but has not yet shared any concrete plans, timelines, or financial models.

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