The Employees’ Provident Fund Organisation (EPFO) is planning a major relief for private sector retirees by proposing a hike in the minimum pension under the Employees’ Pension Scheme (EPS) to ₹7,500 per month. This increase is expected to be implemented by May 2025, offering financial security to over 6 million pensioners.
What is the Current Minimum Pension Under EPS?
Currently, the minimum pension under EPS is ₹1,000 per month—a rate unchanged since 2014. Despite repeated demands by unions and retirees, the amount has remained stagnant for nearly a decade, causing financial difficulties amid rising inflation.
New EPFO Pension Hike: Key Highlights
-
Proposed new minimum EPS pension: ₹7,500/month
-
Rollout expected: By May 2025
-
Approval pending from Finance Ministry
-
Applicable to: Existing EPS pensioners, survivors, and eligible private sector retirees
-
Over 6 million expected to benefit
-
May include revised contribution structures or added government subsidy
Who Will Benefit from the ₹7,500 Minimum Pension?
This hike will benefit the following groups:
-
Current EPS pensioners earning less than ₹7,500
-
Widows and dependents under survivor pensions
-
Employees with low pensionable salary from the private sector
-
EPS-covered individuals with valid PPO numbers
Eligibility Conditions for the New Minimum Pension
| Criteria | Requirement Description |
|---|---|
| Membership Duration | Minimum 10 years of EPS service |
| Retirement Age | 58 years (or 50 with reduced pension) |
| EPS Contribution | Continuous EPS deposits during employment |
| Current Pension | Must be below ₹7,500 |
| Government Employees | Not eligible (only private sector retirees apply) |
| Valid PPO | Must hold a valid Pension Payment Order |
| Bank Account | Linked to EPFO records |
| KYC Compliance | Aadhaar and other details updated on UAN portal |
When Will the Pension Hike Take Effect?
Although not officially notified yet, the pension hike is expected by May 2025. Ongoing discussions between the Labour Ministry, EPFO, and Finance Ministry are focused on budget allocation and final policy approval. Once approved, pensioners can expect the revised amount directly in their linked bank accounts.
Financial Impact of the New Pension Rule
Here’s a comparison of the current and proposed pensions for different EPS beneficiaries:
| Pension Category | Current Pension | Proposed Pension | Hike (%) |
|---|---|---|---|
| EPS General Retirees | ₹1,000 | ₹7,500 | +650% |
| Widow Pension | ₹1,000–₹1,500 | ₹7,500 | +400% to 650% |
| Family/Dependent Pension | ₹1,000–₹2,000 | ₹7,500 | +275% to 650% |
| Early Retirees | ₹800–₹1,200 | ₹7,500 | +525% to 837% |
| Disability Pension Cases | ₹1,000 | ₹7,500 | +650% |
| Voluntary Retirees | ₹1,200 | ₹7,500 | +525% |
Challenges in Implementing the Pension Hike
Some key concerns include:
-
High budgetary requirement from the government
-
Clarity needed on revised EPS contribution structures
-
Stress on the EPFO fund pool
-
Uncertainty around whether contributions from employers or employees will increase
Steps Pensioners Should Take Now
To ensure timely benefits, EPS beneficiaries are advised to:
-
Ensure UAN is active and Aadhaar is linked
-
Confirm PPO (Pension Payment Order) number validity
-
Keep bank account linked with EPFO updated
-
Regularly visit epfindia.gov.in for official updates
-
Reach out to previous employers to verify EPS contributions
-
Be ready to apply for pension revision when notified
FAQs
What is the proposed change in the EPFO pension scheme?
The government is considering increasing the minimum monthly pension under the Employees’ Pension Scheme (EPS) from ₹1,000 to ₹7,500. This proposal aims to enhance financial security for retirees, especially those from the private sector.
When is the new pension amount expected to be implemented?
If approved, the revised pension is anticipated to be rolled out by May 2025. However, the exact date will depend on the final decisions made by the Central Board of Trustees (CBT) and subsequent government notifications.
Who will benefit from the increased pension?
The hike is expected to benefit over 6 million pensioners who are currently receiving less than ₹7,500 per month under the EPS.
What are the eligibility criteria for receiving the increased pension?
While specific eligibility details are yet to be finalized, generally, pensioners under the EPS who meet the service and contribution requirements set by the EPFO would be eligible. It’s advisable to stay updated with official EPFO announcements for precise criteria.
Click here to know more.
Aanchal is a passionate writer with a keen interest in storytelling, content creation, and creative expression. She enjoys exploring diverse topics and crafting engaging narratives that captivate readers.