The Employees’ Pension Scheme (EPS-95) is one of the largest social security programs in India that has over 80 lakh pensioners covered. It was started in 1995 and provided a lifetime monthly pension for the organized sector workers after their retirement, disability or in case of death to their families. In 2025, the petition for pension hike has become the loudest as the current minimum pension of ₹1,000 is not enough due to the high cost of living.
Current Situation
Currently, the EPS-95 pensioners are receiving a minimum of ₹1,000 every month. Trade unions and pensioner associations have asked the government to raise this minimum amount to ₹7,500 or ₹9,000. The matter came up in Parliament during the Winter Session of 2025, and the Labour Ministry stated that the demand is acknowledged, but the scheme is experiencing an actuarial deficit which makes immediate implementation difficult.
Government’s Stand
According to the Ministry of Labour & Employment, all the expenditures on the EPS-95 program are sourced from the employers’ and the central government’s contributions. The last estimation of the fund showed that there is a shortfall which means that significantly raising pensions would put a huge pressure on the resources. Nonetheless, the government has given an assurance to the pensioners that their worries are being taken into account in the pre-budget talks.
Pensioners’ Demands
Pensioners say the current amount is simply not enough to cover the bare necessities like medical care, shelter, and daily sustenance. They argue that the rising cost of living has made it even harder for old people to cope with the meager amount of ₹1,000. The aged consider that to be at least ₹7,500 would be enough to grant them an old age free of financial worries and with the respect deserved.
Possible Outcomes
Although no formal declaration has been made yet, the deliberations regarding the Union Budget 2025 point to the possible consideration by the government to change the pension amount.The final decision will depend on balancing pensioners’ welfare with the financial sustainability of the EPS fund
Comparison Table
| Aspect | Current Pension | Proposed Hike (Demand) | Government Response |
|---|---|---|---|
| Minimum Monthly Pension | ₹1,000 | ₹7,500 – ₹9,000 | Under consideration, fund deficit cited |
| Pensioners Covered | 80 lakh+ | Same | Benefits depend on fund health |
| Timeline | Ongoing 2025 | Budget 2025 discussions | Awaiting official decision |
Final Thought
The EPS-95 Pension Hike 2025 matter is big for the majority of retirees in India. Pensioners are asking the government for a huge increase, but the latter is considering the fiscal situation before announcing its verdict. In case it is granted, the hike would not only be a relief but also a chance to enhance the living standards of elderly people in the entire nation.