In the budget 2025, there may be great news for pensioners. The government is considering an increase in Pension, EPS 95 (Employees ‘Pension Scheme 1995 and EPFO (Employees’ Provident Fund Organization. This will benefit millions of pensioners. Currently the minimum pension is Rs 1,000 per month, which is being demanded to increase to Rs 7,500 per month.
Representatives of pensioners recently met Finance Minister Nirmala Sitharaman and placed their demands. Along with increasing the minimum pension, he has also demanded dearness allowance (DA) and free medical facility. The Finance Minister has assured to consider these demands.
EPS 95 and EPFO Pension: An Introduction
EPS 95 and EPFO pension are among the largest social security programs in India. These schemes provide regular income to organized sector employees after retirement.
The main features of EPS 95 and EPFO Pension
| Speciality | Description |
| Launch year | 1995 |
| management | By EPFO |
| Current minimum pension | Rs 1,000 per month |
| Proposed minimum pension | Rs 7,500 per month |
| Beneficiary | Employees of organized sector |
| Pension start age | 58 years |
| Employee contribution | 12% (original salary + da) |
| Employer contribution | 12% (8.33% EPS, 3.67% EPF) |
Possible changes in budget 2025
There can be many significant changes in EPS 95 and EPFO pension in Budget 2025:
- Minimum pension increase: increased from Rs 1,000 to Rs 7,500 per month.
- Dearness allowance (DA): Proposal to give regular DA to pensioners.
- Medical facility: Free medical facility for pensioners and their spouse.
- Change in pension calculation: Pension calculation based on the average salary of final 60 months.
Demand for pensioners
Pensioners have made the following main demands:
- Minimum pension Rs 7,500 per month
- Regular dearness allowance (DA)
- Free medical facility
- Improvement in pension calculation
- Payment of dues
EPS 95 Pension Types
Various types of pension are available under EPS 95:
- General Pension: At the age of 58 years
- Quick Pension: After 50 years of age (at low rate)
- Widow pension: for wife of dead employee
- Child Pension: For children of dead employee
- Orphan pension: for children on death of both parents
- Disability Pension: In case of permanent disability
Importance of pension increase
Increase in pension will have a big impact on the lives of pensioners:
- Better standard of living: More pension will make it easier to meet daily expenses.
- Help in medical expenses: It will help in meeting increasing medical expenses in old age.
- Economic security: Family’s economic security will increase.
- Dignified life: Pensioners will be able to lead life with dignity.
Pension calculation method
Pension under EPS 95 is calculated on the basis of the following formula:
Monthly Pension = (Pensionable Salary × Pensionable Service) / 70
- Pensionable Salary: Average monthly salary of final 60 months
- Pensionable Services: Number of years of contribution to EPS
Difference between EPFO and EPS 95
EPFO and EPS 95 are important for both employees, but there are some main differences:
| Speciality | EPFO | EPS 95 |
| Nature | Savings scheme | Pension scheme |
| Benefit | Lump sum | Monthly pension |
| withdrawal | Full amount on retirement | As monthly pension |
| Interest rate | Decided by the government | Not applied |
| Employee contribution | 12% | nobody |
| Employer contribution | 3.67% | 8.33% |
Government’s efforts to increase pension
The government is taking the following steps to improve the status of pensioners:
- Increase in minimum pension amount
- Improvement in method of pension calculation
- DA and Medical Facilities Consideration
- EPFO’s functioning improves
- Digital platform development
Suggestions for pensioners
Some important suggestions for pensioners:
- Link your EPFO account to Aadhaar
- Check your pension details regularly
- Stay updated on EPFO’s website
- Use EPFO Helpline for any problem
- Keep your documents updated
future prospects
EPS 95 and EPFO pension can improve further in future:
- Digitization: Complete digitization of pension process
- Flexible Pension Schemes: Pension Options as per personal requirements
- Investment Options: More investment options for pension funds
- Portability: Pension portability for changing jobs
- International recognition: Pension facility for those working abroad
conclusion
Proposed changes in EPS 95 and EPFO pension can be a major relief for pensioners. The provision of increase in minimum pension, DA and medical facilities will improve their standard of living. However, there are many challenges in implementing these changes, on which the government and EPFO will have to pay attention. Overall, these efforts are an important step towards strengthening India’s social security system.
Rejuvenation: This article has been prepared on the basis of publicly available information. Although there is talk of changes in EPS 95 and EPFO pension in the budget 2025, the final decision will be taken by the government itself. Readers are advised to confirm from official sources before any action.
