The Employees’ Provident Fund Organisation (EPFO) has decided to raise the minimum pension under EPS-95 after more than 10 years, bringing the long-awaited relief to the retirees of the private sector, and the pension hike proposal which is expected to be finalized in the Central Board of Trustees (CBT) meeting in October 2025, could increase the minimum pension from Rs 1,000 to Rs 2,500 per month.
What’s Changing in EPFO Pension Rules?
The current minimum pension under the Employees’ Pension Scheme (EPS-95) has remained frozen at ₹1,000 since 2014. Now, EPFO is mooting a revision, which would:
- Hike the minimum pension to ₹2,500
- Lift the salary limit for EPS membership from ₹15,000 to ₹25,000
- Raise the employer contribution from ₹1,250 to ₹2,083 per month
The changes would expand the entry level pension coverage and provide better retirement income for another 10 million workers.
Who Will Benefit?
The pension hike will have a direct effect on:
- EPS-95 private sector employees
- Pensioners on minimum pension
- Workers in the salary range of ₹15,000 to ₹25,000 who were hitherto not eligible
The move also promises to draw in more employers into the EPFO fold, which means increased social security coverage in the organized sector.
Expert Views and Reactions
Financial experts and trade unions have been calling for a revision in EPS-95 payouts for a long time. “A ₹1,000 pension is not even enough to survive in today’s economy,” says Rajesh Kumar, a labor rights activist. The proposed increase is considered to be a step towards retirement dignity and income that is adjusted according to inflation.
The proposal is expected to be finalized during the CBT meeting of the EPFO scheduled for October 10–11, 2025, in Bengaluru.
Conclusion
The EPFO pension increase after 11 years is a ground-breaking change in India’s retirement policy concerning private sector workers. EPFO is tackling the issue of insufficient post-retirement income by raising the minimum pension and the salary cap. This reform, if approved, will provide millions of workers who have contributed to India’s workforce for decades with financial stability and social security.
