Employees’ Pension Scheme (EPS-95) is an important social security scheme for organized sector employees in India. The scheme was launched on 16 November 1995 and its purpose is to provide financial stability to employees after retirement. Recently, the government has proposed an increase in pension amount under EPS-95, which will provide relief to millions of pensioners. Let us know in detail what will affect your pension.
Proposed change in EPS-95 pension
In the budget of 2025, the government has proposed to increase the salary limit of contribution under the EPS-95 scheme from ₹ 15,000 to ₹ 21,000. This will not only increase the maximum pension amount, but the minimum pension has also been demanded to increase from ₹ 1,000 to ₹ 7,500.
EPS-95 current and proposed form of pension:
| Parameter | Current status | Proposed Position |
| Minimum pension | ₹ 1,000 per month | ₹ 7,500 per month |
| Maximum pension | ₹ 7,500 per month | ₹ 10,050 per month |
| salary range | ₹ 15,000 | ₹ 21,000 |
The purpose of this proposal is to provide better financial security to pensioners keeping in mind the inflation and rising living costs.
EPS-95 scheme observation
| Name of the scheme | Employees Pension Scheme (EPS-95) |
| Date of beginning | 16 November 1995 |
| Minimum service | 10 years |
| Qualification age | 58 years |
| Current minimum pension | ₹ 1,000 per month |
| Proposed minimum pension | ₹ 7,500 per month |
| Maximum pay limit | ₹ 15,000 (current) |
Why is EPS-95 an increase in pension required?
In the last few years, the increase in inflation and medical expenses has increased financial pressure for pensioners. Under EPS-95 scheme:
- The current minimum pension is only ₹ 1,000 which is insufficient to meet daily requirements.
- About 36.6 lakh pensioners are still receiving less than ₹ 1,000.
- The trade unions and the National Movement Committee (NAC) have long demanded to increase the minimum pension to ₹ 7,500.
Therefore, this proposed change is an important step to improve the standard of living of millions of retired employees.
Contribution system under EPS-95
The contribution under the EPS-95 scheme is as follows:
- Employees Contribution: Employees contribute to 12% EPF account of their basic salary.
- Employer Contribution: Employers deposit 8.33% of total salary and 3.67% EPF account.
- The central government also contributes 1.16% additional (limited to ₹ 15,000).
This system ensures that employees get a certain monthly pension after completing their service period.
EPS-95 benefits of pension hike
This proposed change will benefit the following benefits:
- Better financial security: Increasing minimum and maximum pension amount will help retired employees to deal with inflation and medical expenses.
- Extension of organized sector: More employees will come under this scheme due to increase in salary limit.
- Transparency and convenience: EPFO has made it easier to choose a high pension option with the commencement of online application process.
Eligibility for EPS-95 scheme
To avail the EPS scheme, it is necessary to meet the following conditions:
- The employee will have to complete the service of at least 10 years.
- The age of the employee should be 58 years.
- Regularly contributed to EPF/EPS account.
Demand for EPS-95 NAC
The EPS-95 National Movement Committee has made the following demands:
- The minimum pension should be increased to ₹ 7,500.
- Dearness allowance (DA) should be included.
- Free medical facilities should be provided to all pensioners and their spouse.
The government has assured to consider these demands.
EPS-95 scheme impact
The biggest impact of this proposal will have on millions of employees who depend on financial assistance after their retirement. This change will help them live a respectable life and meet their basic needs.
EPS increase discussion
In the last few months, there have been several meetings on this issue between the government and the trade unions. Although the trade unions suggested to increase the minimum pension to ₹ 5,000, NAC described it inadequate.
The government has continued a positive discussion on this subject and it is expected that a final decision will be taken in the upcoming budget.
conclusion
The proposed changes under the EPS-95 scheme will not only improve the financial situation of millions of retired employees but will also help them to become self-sufficient. This step is an important initiative towards strengthening the social security system by the Government of India.
Disclaimer:
This article is written only for the purpose of providing information. This proposal has not been implemented till the present time. It would not be appropriate to accept it until the government takes a final decision.
