EPS 95 Pension Update 2025: A big good news has emerged for pensioners under Employee Pension Scheme (EPS) 95. After a long standing demand, the government has now decided to increase the minimum pension of EPS 95 pensioners. Under this new scheme, pensioners will now get a minimum pension of ₹ 7500 per month, along with dearness allowance will also be given.
This move is a relief news for lakhs of pensioners, who have been demanding an increase in pension for a long time. Currently the minimum pension under EPS 95 is ₹1000 per month, which is not enough for old people. The new scheme is expected to improve the financial condition of pensioners.
What is EPS 95 Pension Scheme?
EPS 95 or Employees’ Pension Scheme 1995 is a social security scheme that provides financial assistance to industrial sector employees after retirement. The scheme was launched in 1995 and aims to provide pension benefits to organized sector employees.
Overview of EPS 95 Plan
| Description | Information |
| name of the scheme | Employees’ Pension Scheme 1995 (EPS 95) |
| year of commencement | 1995 |
| beneficiary | industrial sector workers |
| current minimum pension | ₹1000 per month |
| proposed minimum pension | ₹7500 per month |
| Additional benefits | dearness allowance |
| number of beneficiaries | About 75 lakh pensioners |
| employer’s contribution | 8.33% (of salary) |
| employee contribution | 12% (of salary) |
EPS 95 Pension Hike: Highlights of the new scheme
- Increase in minimum pension: Increase from current ₹1000 to ₹7500 per month.
- Dearness Allowance: Along with pension, dearness allowance will also be given.
- Beneficiaries: Around 75 lakh pensioners will benefit from this scheme.
- Date of Implementation: To be announced by the Government soon.
EPS 95 Pension Calculation: How is pension calculated?
Pension under EPS 95 is calculated on the basis of a fixed formula. This formula is:
Pension = (Pensionable Salary x Pensionable Service) / 70
- Pensionable Salary: Average salary of last 60 months
- Pensionable service: Number of years of contribution to EPS 95
For example, if an employee’s pensionable salary is ₹15000 and he has put in 35 years of service, his pension will be:
(15000 x 35) / 70 = ₹7500 per month
Benefits of EPS 95 Pension Hike
- Better standard of living: The increased pension will improve the standard of living of pensioners.
- Financial security: You will get better financial security in old age.
- Relief from inflation: Dearness allowance will help in facing rising prices.
- Social Security: Senior citizens of the society will get better social security.
Contribution to EPS 95 Pension Scheme
Both the employer and the employee contribute to EPS 95:
- Employer’s contribution: 8.33% of employee’s salary
- Employee contribution: 12% of salary (to EPF)
This contribution is credited towards the future pension of the employee.
EPS 95 Pension Eligibility: Eligibility Criteria
To be eligible for EPS 95 pension, certain conditions have to be fulfilled:
- Minimum service period: Minimum of 10 years of service.
- Age: On completion of 58 years of age.
- Early Pension: Pension can be taken even after the age of 50, but the amount will be less.
- Disability or Death: The condition of length of service is not applicable in these cases.
Application process for EPS 95 Pension Scheme
- Filling the form: Fill the prescribed form for EPS pension.
- Document Submission: Submit the required documents like Aadhar Card, Bank Passbook etc.
- EPFO Office: Submit the application at the nearest EPFO office.
- Online Application: Application can also be made online on the EPFO website.
EPS 95 Pension Scheme: Frequently Asked Questions (FAQs)
- Can the pension amount be increased?
Yes, employees can increase the pension amount by contributing on their actual salary. - Can pension be postponed?
Yes, pension can be postponed even after 58 years, which will increase the pension amount. - Is there a provision for family pension?
Yes, after the death of the member his family gets pension. - Is pension amount taxable?
No, pension received under EPS 95 is tax free.
EPS 95 Pension Scheme: Important Points
- Life Certificate: Pensioners have to submit life certificate every year.
- Digital Life Certificate: Now digital life certificate is also accepted.
- Transfer of pension: Pension account can be transferred on change of job.
- Scheme Certificate: Scheme certificate can be obtained on leaving the job.
EPS 95 Pension Scheme: Future prospects
- Further increase in pension amount: There is a possibility of further increase in the pension amount in future.
- Digitization: The pension process can be made more digital.
- Flexible plan: The plan can be made more flexible to give employees more choices.
- Better Investment: Possibility of increase in profits due to better investment of pension funds.
Disclaimer
This article is for informational purposes only. The final decision regarding EPS 95 pension increase and dearness allowance will be taken by the government. Readers are advised to consult official government sources for latest information. The scheme is currently in the proposal stage and the date and details of its implementation have not yet been decided. Please wait for government notifications before taking any decision.
