EPS 95 Pension Increase : In a historic step, welcomed by hundreds of thousands of senior citizens across the country, the central government has finally declared an enhancement of the minimum pension under the Employees’ Pension Scheme 1995 to ₹8,000 per month, with effect from October 2025. This much-awaited revision came about after years of clamour from pensioners’ associations and the growing voice of public opinion.
What EPS 95 Is?
The EPS 1995 is a social security scheme administered by the Employees’ Provident Fund Organisation (EPFO), which aims to provide some financial help to those retired from employment in the organized sector. Essentially, the scheme serves workers engaged in salaries from private sector jobs and some government-linked employment. Today, the scheme has about 6.5 crores as its members, of whom around 70 lakhs are retirees who are drawing pensions.
What’s Changing From October 2025?
The monthly allowances were lavished like pennies: many had been receiving anything between ₹1,000 and ₹2,500 in monthly stipends, which is widely perceived as being pitiably inadequate in this age. The government:
- Increased minimum pension under EPS 95 to ₹8,000 per month.
- Made the revision applicable with effect from October 1, 2025.
- Made a commitment to undertake periodic revisions, tying them to inflation and cost-of-living indices.
The Ministry of Labour and Employment thereby declared that the intent of this measure is “to ensure dignified retirement for the Indian workforce who have contributed significantly in the nation’s development.”
A Long-Awaited Relief
For years, pensioners under EPS 95 have cried foul over the paltry amounts that they were subjected to. Most faced difficulty even affording a basic existence; anything between food, medicine, and shelter. An increase to ₹8,000 is considered to be a very positive step toward providing financial security to these senior citizens.
Rajendra Prasad Sharma, a 67-year-old retired textile worker from Surat, said, “These increases are tears of joy; we’ve been surviving on just ₹1,500 a month, so now I can finally buy medicines for myself and help out my family.”
Financial Impact And Budget Allocation
In effect, the pension revision will cover around 60 lakh pensioners forthwith. To accommodate this revision, the government has proposed an additional fund of ₹15,000 crore for 2025-26 from the EPF pension funds.
It is considered by many experts to be a socially just and economically viable path, more so due to inflation and a rising elderly population.
What Pensioners Should Do Now
- Pensioners need not reapply to receive the revised amount.
- The benefits will be directly credited into pensioners’ bank accounts linked with EPFO.
- If anyone is not getting full benefits, EPFO will re-issue the revised Pension Payment Order (PPO) by November 2025.
Also Read: EPFO Pension Hike 2025: ₹7,500 Monthly Pension Announced For EPS-95 Retirees