Finally, after a long wait and significant requests, the Employees’ Provident Fund Organisation (EPFO) is set to increase pensions drastically under the EPS-95 scheme. People are very curious: Is it going to be a hike of ₹1,000 at least? The answer is a surprise—plans are being made to gradually increase the minimum pension to ₹7,500 a month.
What’s Changing in EPFO Pension?
The existing minimum pension under the Pension scheme (EPS-95) has stayed at the same ₹1,000 since 2014. The Central Board of Trustees (CBT) endorsed a plan to enhance this to ₹7,500 monthly in October 2025, establishing Indian retirement perks as one of the shiftiest countries’ practices.
Key updates include:
- Minimum pension hike from ₹1,000 to ₹7,500
- Salary limit for EPS eligibility may go up from ₹15,000 to ₹25,000
- Employer contribution possibly increased from ₹1,250 to ₹2,083 per month
Gradually pensions will be linked to inflation, and it is done with the very intention of improving the post-retirement income of many private sector employees.
Who Will Benefit?
The raise in the pension will positively affect:
- More than 6 million who are receiving pensions under EPS-95
- Private sector workers who are on the verge of retirement
- People getting salaries of between ₹15,000 and ₹25,000 who had previously been excluded from EPS coverage
This will surely make the lives of the retirees financially secure, and particularly those who are receiving only the minimum pension.
Expert Views
The labor organizations, as well as the financial professionals, have positively reacted to the decision. “This hike was to come and it is very necessary to keep the retired workers’ dignity,” comments Rajesh Malhotra who is an economist in labor area. Besides, the Supreme Court had also directed the government to take steps regarding reforms in EPS-95, thus the pressure to finally implement the hike was increased.
Conclusion
The hike of ₹1,000 — and possibly more — is an enormous relief for EPFO pensioners who have been waiting for more than a decade for any change. The possibility of minimum pension going up to ₹7,500 suggests that the reform can change the retirement experience for millions. Although the final implementation details are still pending, the path is already set: better pensions, broader coverage, and stronger social security.
