A significant development is on the horizon for private sector employees relying on the Employees’ Pension Scheme (EPS-95). For years, pensioners under the Employees’ Provident Fund Organisation (EPFO) have been advocating for an increase in the minimum pension, which has remained at a meager ₹1,000 per month since 2014.
The movement gained momentum recently when a delegation of EPS-95 pensioners met Finance Minister Nirmala Sitharaman on January 10, 2025, to present their demand for a minimum pension of ₹7,500 per month plus dearness allowance (DA).
With rising inflation, medical costs, and living expenses, the demand for a higher pension has become a pressing issue. This article explores the background, demands, government response, and potential impact of the proposed pension hike.
Background: Understanding the EPS-95 Scheme
What is EPS-95?
The Employees’ Pension Scheme (EPS-95) was introduced in 1995 by the EPFO under the Ministry of Labour and Employment, Government of India. It is designed to provide financial security to employees in the organized sector after retirement.
Current Pension Structure
- In 2014, the government set a minimum pension amount of ₹1,000 per month under EPS-95.
- Despite continued appeals from pensioners, there has been no revision in the last 10 years.
- More than 36.60 lakh pensioners are still receiving less than ₹1,000 per month, which is insufficient to meet basic living expenses.
Challenges Faced by EPS-95 Pensioners
The low pension amount creates financial difficulties for many retirees, particularly those without alternative income sources. The major challenges include:
✅ Rising Cost of Living: Inflation has significantly increased the cost of essential goods and services.
✅ High Medical Expenses: Senior citizens require regular medical care, which is often expensive.
✅ Lack of Dearness Allowance (DA): Unlike government pensions, EPS-95 pensions do not include DA adjustments to offset inflation.
✅ No Free Healthcare Benefits: Pensioners are also demanding free medical care for themselves and their spouses.
Demand for a ₹7,500 Minimum Pension
The EPS-95 National Agitation Committee (NAC) has been at the forefront of this long-standing demand. During their meeting with Finance Minister Nirmala Sitharaman, they emphasized the urgent need to:
- Increase the minimum pension to ₹7,500 per month.
- Introduce DA to ensure pensions keep pace with inflation.
- Provide free healthcare facilities for pensioners and their spouses.
The Finance Minister reportedly assured the delegation that the government would seriously consider their demands. However, no official announcement has been made yet.
Differing Views: Trade Unions vs. Pensioners
While EPS-95 pensioners are pushing for a ₹7,500 pension, trade unions that participated in the pre-budget consultation with the Finance Minister suggested raising the pension to ₹5,000 per month instead.
Labor Organizations’ Proposal
- Trade unions proposed a fivefold increase in the pension to ₹5,000 per month.
- They argue that ₹7,500 may place a heavy financial burden on the government.
- The increase to ₹5,000 would still be a substantial improvement over the current pension.
Pensioners’ Counterargument
- The EPS-95 National Agitation Committee (NAC) strongly opposes the ₹5,000 proposal, stating that it is still insufficient to cover the living expenses of retirees.
- They criticize the trade unions for undermining the pensioners’ actual financial needs.
- The committee insists that a minimum of ₹7,500 plus DA is essential for pensioners to live with dignity.
Comparison: Current vs. Proposed Pension
| Pension Amount | Status | Proposed By | Includes Dearness Allowance (DA)? |
|---|---|---|---|
| ₹1,000/month | Current pension (Since 2014) | Government of India | ❌ No |
| ₹5,000/month | Proposed alternative | Trade Unions | ❌ No |
| ₹7,500/month | Official demand | EPS-95 National Agitation Committee | ✅ Yes |
Impact of Pension Hike on EPS-95 Pensioners
A potential increase in the EPS-95 minimum pension could have significant benefits for private sector retirees:
| Impact Area | Expected Benefit |
|---|---|
| Financial Security | Higher pension will provide retirees with a stable source of income. |
| Better Quality of Life | Increased pension will help cover basic expenses like food, rent, and healthcare. |
| Medical Assistance | Pensioners are also demanding free healthcare, which will ease their medical burdens. |
| Reduced Dependence | Many pensioners currently rely on family members for financial support. A pension increase will make them more independent. |
Government’s Response and Next Steps
The central government is currently evaluating the demands, and a final decision may be taken in the upcoming budget session. Possible steps include:
🔹 Formation of a Review Committee: The government may set up a panel to study the feasibility of the pension hike.
🔹 Budget Allocation for Higher Pensions: The Finance Ministry may allocate additional funds for pension increases.
🔹 Implementation Timeline: If approved, the pension hike could be phased in gradually to manage financial impact.
Pensioners remain hopeful that the government will act swiftly to provide long-overdue financial relief.
Frequently Asked Questions
Q1: Why is there a demand to increase the EPS-95 pension?
A1: The current minimum pension of ₹1,000 per month has not changed since 2014, and pensioners argue that it is inadequate to cover basic living expenses. They are demanding ₹7,500 per month plus DA to cope with inflation and medical costs.
Q2: Who is leading the demand for a pension hike?
A2: The EPS-95 National Agitation Committee (NAC) is spearheading the movement, with active participation from pensioners across India.
Q3: What is the difference between the ₹5,000 and ₹7,500 proposals?
A3: Trade unions suggested increasing the pension to ₹5,000 per month, while EPS-95 pensioners are demanding ₹7,500 plus DA. The pensioners argue that ₹5,000 is still too low to meet their financial needs.
Q4: Has the government made any official announcement about the pension hike?
A4: As of now, the government has not officially confirmed the pension increase. However, the Finance Minister has assured pensioners that their demand is under serious consideration.
Q5: When can we expect a decision on the EPS-95 pension hike?
A5: A final decision may be announced in the upcoming budget session, where the government is expected to review financial feasibility and allocate necessary funds.
The demand for a higher EPS-95 pension is gaining momentum, with pensioners seeking ₹7,500 per month plus DA to improve their financial well-being. The government’s decision on this matter will have a major impact on millions of private sector retirees.
As pensioners continue their relentless efforts, all eyes are now on the Finance Ministry and upcoming budget announcements. Will the government finally grant them long-awaited financial relief? Time will tell.
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Kishan is a knowledgeable writer specializing in agriculture and the latest government job recruitments, delivering clear and insightful content to inform and empower readers.
