Pensioner’s bat! EPS95 pension increases, this is the new update. EPS 95 Pension New Update 2025 – StudyToper

Good news for pensioners! The central government has proposed major changes in the EPS 95 pension scheme. The Union Budget 2025 plans to increase the salary limit from ₹ 15,000 to ₹ 21,000 under EPF and EPS 95. This change will increase the monthly pension to pensioners significantly. Currently, the maximum pension under EPS 95 is ₹ 7,500 per month, which can reach ₹ 10,050 when the new limit is implemented.

Also, pensioners have also met the Finance Minister demanding minimum pension ₹ 7,500 and dearness allowance (DA). The government is seriously considering these demands. In this article, we will understand in detail the new updates of EPS 95 Pension Scheme 2025, its effects and important information for the beneficiaries.

What is EPS 95 Pension Scheme?

EPS 95 or Employees Pension Scheme 1995 is a social security program, operated by EPFO. The scheme provides regular income to private sector employees after retirement. Let’s see the main features of this scheme at a glance:

EPS 95 Pension New Update 2025: Main Change

The Central Government has proposed several significant changes in the EPS 95 pension scheme in Union Budget 2025. These changes have been made aimed at improving the standard of living of pensioners. Let’s take a look at these proposed changes:

1. Increase in salary limit: Proposal to increase the salary limit from ₹ 15,000 to ₹ 21,000 under EPF and EPS 95.
2. Increase in pension amount: The maximum pension can increase from ₹ 7,500 to ₹ 10,050 if the new salary limit is implemented.
3. Increase in minimum pension: Proposal to increase the current from ₹ 1,000 to ₹ 7,500 per month.
4. Dearness allowance (DA): A plan to give regular DA to pensioners.
5. Free medical facility: Free health services for pensioners and their spouse.
6. Change in pension calculation: Calculation of pension based on the average salary of final 60 months.

EPS 95 Pension Hike: How will you get benefit?

Employees and pensioners will get the following benefits due to increase in salary limit proposed by EPFO:

1. Increase in pension amount: If the new salary limit is ₹ 21,000, pension will be calculated based on this formula:
2. Pension = (21,000 × service period) ÷ 70
3. For example, for 35 years of service period:
4. Pension = (21,000 × 35) ÷ 70 = ₹ 10,050
5. That is, ₹ 2,550 more will be available than the current ₹ 7,500.
6. Minimum pension increase: Employees with less salary will also benefit from the current ₹ 1,000 to ₹ 7,500 per month.
7. The contribution of the employer will increase: Increasing salary limit will also increase the contribution (8.33%) of the employer to the EPF, which will strengthen the pension fund.
8. Improvement in standard of living: Increased pension amount will improve the standard of living of pensioners.
9. Benefits in health facilities: Free medical facility will provide great relief to pensioners.

Types of EPS-95 Pension Scheme

Various types of pension are available under EPS-95, which help beneficiaries under different circumstances:

1. General Pension: Regular pension received at the age of 58 years.
2. Quick pension: Pension received at a low rate after 50 years of age.
3. Widow Pension: Pension for the wife of the deceased employee.
4. Child Pension: Pension for the children of the deceased employee.
5. Orphan pension: Pension for children on the death of both parents.
6. Disability Pension: Pension in case of permanent disability.

EPFO Pension Scheme 2025: New Changes

EPFO has recently made some significant changes, which can prove beneficial for pensioners:

1. Centralized Pension Payment System (CPPS): Applied from 1 January 2025, so that pensioners will be able to get pension from any bank branch.
2. Application for Higher Pension: The last date was extended till 31 January 2025.
3. Explanation for employers: Time to complete the explanation sought by EPFO ​​by 15 January 2025.
4. Status of applications: A total of 17,48,775 applications received, 16,282 pension payment order issued, 2.6 lakh applications rejected.

EPS 95 Pension Calculation: How is the calculation?

Pension under EPS 95 is calculated on the basis of the following formula:

Pension = (pensionable salary × service period) ÷ 70

Where:

• Pensionable salary = average salary of final 60 months (maximum ₹ 15,000)
• Number of years of contribution to service period = EPF

Example:

• If an employee’s pensionable salary is ₹ 15,000 and has contributed for 30 years, then his pension will be:
• Pension = (15,000 × 30) ÷ 70 = ₹ 6,428.57 per month

Application process for EPS-95 pension

Following is the process of applying for EPS-95 pension:

1. Online application:
   • Go to the official website of EPFO
   • Click on ‘Our Services’ tab
   • Select ‘Member UAN/Online Service (OCS/OTCP)’ in ‘For Employees’ section
   • Login with your UAN and Password
   • Click on ‘Claim (Form-31, 19 & 10C)’ in ‘Online Services’
   • Fill the form and upload the required documents
3. Offline application:
   • Download and fill Form 10D
   • Submit to your employer with necessary documents
   • Employer will submit the form to EPFO ​​office

EPS 95 Pension Scheme: Important Tips for Beneficiaries

1. Link UAN to Aadhaar: To get a pension, it is mandatory to link your UAN to Aadhaar card.
2. Keep KYC updates: Keep updating your KYC information from time to time.
3. Check the passbook: Check your EPF passbook regularly and report any discrepancy.
4. Plan retirement: Consider savings options other than pension.
5. Keep information about the rules: Keep knowledge of rules and updates related to EPS 95.

Disclaimer: This article is only for general information and educational purposes. The terms and conditions of the EPS 95 Pension Scheme can be changed from time to time. Readers are advised to get the latest information from the official sources of EPFO ​​before any important decision. The information given in the article cannot be considered complete or final and should not be taken as any legal or official advice. The actual benefits and rules will only be determined by government notifications.