The Employees’ Provident Fund Organisation (EPFO) is planning a drastic change to the Employees’ Pension Scheme (EPS-95) by 2025 which will be a huge comfort for over 6 million pensioners. Among the changes, an increase in the minimum pension together with the raise of the eligibility salary ceiling would be the major change in the retirement which is expected to be the case of private sectors.
What’s the EPS-95 Big Update?
As a result of the latest dialogues between EPFO and the Ministry of Labour and Employment:
- The minimum pension is likely to go up from ₹1,000 to ₹2,500 monthly
- The ceiling on salary eligible for EPS may go up to ₹25,000 from the existing ₹15,000
- Employer’s contribution could see an increase from ₹1,250 to ₹2,083 per month
The above proposals were presented at the recent meeting of the Central Board of Trustees (CBT) and are being reviewed for final approval.
Who Will Benefit?
The EPS-95 update will be advantageous to:
- Employees in the private sector, particularly those from small and medium enterprises
- Low-income pensioners who are currently on the minimum pension
- Future retirees as a result of the setting of higher salary caps leading to better pension calculations
This change is anticipated to make financial life easier for the large number of retirees who depend on EPFO pensions only.
Expert Views and Reactions
Pension experts and trade unions have reacted positively to the proposals. Rajesh Malhotra, a retirement policy analyst, states, “This is a long-overdue correction that aligns the pension payouts with inflation and the increasing living costs.”
On the contrary, financial specialists take caution by saying that the government has to take care of providing the necessary funds and maintaining the balance through proper actuarial practices sharing over the long term the sustainability of the pension scheme.
What Pensioners Should Do
In order to take advantage of the EPS-95 update:
- Check if your KYC, Aadhaar, and UAN details on the EPFO portal are current
- Keep yourself updated regarding the official announcements through epfindia.gov.in
- Get in touch with your employer or EPFO field office to confirm your contribution and service history
Conclusion
The EPS-95 BIG Update 2025 has the potential to change the course of India’s pension system by making it more generous and more accessible at the same time. As the proposals approach the final approval stage, it is important for both pensioners and employees to stay informed and keep their records updated in order to enjoy the maximum benefits.
