A raise in the minimum pension amount that retirees under the Employees’ Pension Scheme (EPS-95) are entitled to has been announced by the Employees’ Provident Fund Organization (EPFO). For many of retirees who depend on their pensions to cover everyday costs, this ruling offers financial comfort.
This EPFO Pension Increase 2025 will improve the quality of life for retirees by increasing their monthly payout. There is possibility of raising the minimum pension provided by EPFO under EPS. In 2014, the minimum pension was set at Rs.1,000 per month. In order to keep up with the rising expense of living, many organizations, like as trade unions and retirees’ associations, have been asking that this be raised to Rs.7,500 per month.
EPFO Pension Increase 2025
In a historic move for Indian workers, the Employees’ Provident Fund Organization (EPFO) raised the minimum pension amount from Rs.1,000 to Rs.7,000 per month, with effect from 2025. Along with this sevenfold increase, pensioners will now receive Dearness Allowance (DA) through the Employees’ Pension Scheme (EPS), which provides much-needed inflation protection. More than 6 million pensioners will benefit from this transfer, many of whom depend entirely on it to cover their daily costs, particularly in retirement.
Advocacy for Pension Increase
At the watchdog of the effort has been the EPS-95 National Agitation Committee, which represents EPS-95 retirees. Committee members presented their case for the pension increase to the Finance Minister at a pre-budget consultation meeting in January 2025. In order to maintain basic living conditions, they highlighted how this pension is insufficient and called for a raise of Rs.7,500 per month, including dearness allowance (DA). Assuring them that their requests will be taken into consideration was the Finance Minister.
Raise minimum EPF pension, House panel tells Centre
A BJP MP-led Parliamentary Standing Committee on Labour has recommended that the Center increase the minimum pension of Rs 1,000 that the EPFO provides under EPS. The minimum pension has been fixed by the GOI at Rs 1,000 per month from 2014. Trade unions and pensioner groups, meanwhile, have long called for raising the basic pension to at least Rs 7,500 per month.
The committee reaffirmed the said proposal in its report. There is a need to carefully consider the possibility of raising the minimum pension of Rs 1,000 per month under EPS, 1995, given the significant increase in living expenses in 2024 compared to 2014 and other pertinent factors that were presented to the Committee by different stakeholders during their oral evidence sessions in 2023, the statement stated.
The committee noted that the Ministry/EPFO must act quickly to address the issue in the greater benefit of the affected retirees and their families, despite the financial implications. The Committee strongly recommended that the exercise be finished within a specific timeframe, preferably by the end of 2025, in order to assess the scheme’s effectiveness, sustainability, prospects for further improvement, etc., given that the third-party evaluation is being carried out thirty years after it was first introduced.
What is New EPFO Pension Amount?
Together with Dearness Allowance (DA), the EPFO increased the minimum guaranteed pension amount to Rs. 7,500 per month. This decision is a major step in addressing the long-standing need of retirees who have faced financial hardships as a result of the growing cost of living. In the past, a number of seniors got insufficient payments, which made it challenging for them to cover their everyday costs. The goal of the pension hike is to provide them more stability and financial security.
Who Will Benefit From the Pension increase?
The Employees’ Pension Scheme (EPS-95) pension boost is applicable to all registered pensioners. That comprises:
- Workers who made contributions to the Employees’ Provident Fund (EPF) while they were employed in the public and private sectors.
- Senior individuals who rely on their pension each month to cover their spending.
those whose pensions were incredibly low prior to the modification. - This pension change will help seniors better manage their finances by paying for necessities like groceries, utilities, and medical care.
The Government’s consideration and current status
Early in 2025, reports surfaced indicating that the administration was in fact taking this plan into consideration. It was anticipated that in response to the pensioners’ requests, the Union Budget 2025 will raise the minimum EPS pension to Rs.7,500. This would provide immediate assistance to millions of retirees who barely make ends meet with their pitiful pension payments.
Although conversations and all proposals have been made, there has been no confirmation as of yet about the planned pension increase or a specific schedule for its implementation. Despite this, the government is evaluating the proposal’s financial feasibility. Stakeholders and pensioners hope that a wise decision will be made quickly so that the retirees may get helpful financial support.
| Official Website | Click Here |
| Homepage | OFSSBihar.in |