In 2025 the government has made a big announcement about the Employees’ Pension Scheme (EPS-95) and has increased the cap on monthly pensions from ₹7,500 to ₹15,000. While this move is beneficial mainly for the higher-end of income retirees, the latter are still waiting for a raise in the lowest pension, which is still a watershed claim from the side of the EPS-95.
What Is EPS-95?
EPS-95 is a pension plan that is administered by the Employees’ Provident Fund Organisation (EPFO). It allocates funds in the form of monthly pensions to the retired workers of the formal sector. The whole nation consists of over 6 million pensioners benefitting from the scheme. For quite some time, the patients have been urging for the minimum pension hike, which has been unaltered at ₹1,000 since 2014.
What Has the Government Changed?
In October 2025, EPFO has brought about major changes:
- Maximum pension cap raised to ₹15,000/month
- Pension withdrawal upon reaching 50 years of age (previously 58)
- Faster processing due to launch of the digital pension management system The primary objective of these transformations is to make the pension system contemporary and more accessible for the contributors. However, the plea for increasing the minimum pension to ₹7,500 was not placed on the agenda for the recent EPFO meeting.
EPS-95 Pension Update 2025 Summary Table
| Feature | Previous Rule | 2025 Update |
|---|---|---|
| Minimum Monthly Pension | ₹1,000 | No change |
| Maximum Monthly Pension | ₹7,500 | Increased to ₹15,000 |
| Early Withdrawal Age | 58 years | Reduced to 50 years |
| DA Inclusion | Not applicable | Still under review |
| Digital Pension Access | Limited | Centralized system introduced |
Final Thoughts
The hike in the maximum pension is a good move but at the same time, the EPS-95 pensioners are still demanding to the government about higher minimum pension, full DA restoration, and health coverage. The government has accepted their issues but no action has been taken so far. The retirees are anticipating that the upcoming EPFO discussions will finally grant them their long-standing requests for a secure retirement.