Rising Hopes for Pensioners
Millions of retirees under the Employees’ Pension Scheme (EPS-95) are eagerly waiting for a pension hike as the festive season approaches. The current minimum pension of ₹1,000 per month is too low to meet rising living costs, say pensioners and trade unions. They are pushing for an increase to ₹7,500, which would be a massive 650% jump. In recent Parliament sessions, the government has responded to these demands, sparking hope among nearly 78 lakh EPS-95 pensioners across India.
Government’s Response in Parliament
In the Lok Sabha, MPs Vaiko and M. Shanmugam raised questions about the low pension amount. They asked if the government plans to raise it soon, especially with festivals like Diwali nearing. Minister of State for Finance, Pankaj Chaudhary, said the government has received many requests from trade unions and pensioners. While no final decision or timeline was shared, the government assured it is reviewing the demands. It also continues to provide ₹750-1,000 crore yearly to support the ₹1,000 minimum pension for 36.6 lakh pensioners.
Challenges and Demands
The government pointed out a big challenge: an actuarial deficit in the EPS-95 fund. This means the fund may not have enough money to support a higher pension without extra funding. Trade unions have suggested a smaller hike to ₹5,000, but pensioners say this is not enough. The EPS-95 National Agitation Committee is also demanding a Dearness Allowance (DA) linked to inflation and free medical care for pensioners and their spouses. These demands aim to give retirees better financial security and dignity.
What Pensioners Can Expect
A parliamentary panel, led by BJP MP Basavaraj Bommai, has asked the Labour Ministry to complete a third-party evaluation of the EPS-95 scheme by December 2025. This review will check the scheme’s sustainability and may pave the way for a pension hike. Some reports suggest a possible increase to ₹7,500 or even ₹8,500 by mid-2026, with DA adjustments based on the All India Consumer Price Index (AICPI). However, no official confirmation has come yet, keeping pensioners hopeful but cautious.
Steps for Pensioners
To prepare for any changes, pensioners should take these steps:
- Check EPFO portals regularly for updates.
- Update bank and Aadhaar details to avoid payment delays.
- Stay informed about government announcements, especially during the festive season.
Pension Details at a Glance
| Aspect | Current Status | Proposed Change |
|---|---|---|
| Minimum Pension | ₹1,000/month | ₹7,500–₹8,500/month |
| Dearness Allowance | Not included | Linked to AICPI |
| Budgetary Support | ₹750–1,000 crore/year | May increase |
Looking Ahead
The government’s commitment to review pension demands has kept the festive spirit alive for EPS-95 retirees. A hike to ₹7,500 would be life-changing, helping them manage rising costs and live with dignity. With discussions ongoing and a Supreme Court verdict supporting the hike, pensioners are hopeful for good news by Budget 2026. For now, they are advised to stay updated and ensure their details are ready for smooth pension payments.