A long-pending demand of lakhs of EPS-95 pensioners once again found its way to Parliament during the ongoing Winter Session. The subject of increasing the minimum monthly pension and extending Dearness Allowance (DA) benefits under the Employees’ Pension Scheme, 1995 (EPS-95) was raised in the Lok Sabha on December 1, 2025. This is a demand that pensioners have repeatedly voiced for years, hoping for a meaningful revision that reflects rising living costs.
A Demand That Has Gone Unmet for Years
EPS-95 is the country’s largest pension scheme for private-sector and organised-sector employees, covering more than 80 lakh pensioners. The scheme, introduced in 1995, functions as a combined contribution-and-benefit system. However, despite inflation and higher daily expenses, the minimum pension under the scheme has remained unchanged at ₹1,000 per month since 2014.
Pensioners argue that this amount is too low to support basic needs. Many associations have been pushing the government to increase the minimum pension to at least ₹7,500 per month. They have also demanded the introduction of DA something government pensioners receive regularly to help neutralise the impact of inflation.
Will the EPS-95 Minimum Pension Be Raised From Rs 1,000 to Rs 7,500?
This question was directly raised in Parliament by MP Balya Mama Suresh Gopinath Mhatre. He sought clarity on whether the government was considering a long-awaited increase in the minimum pension, why EPS-95 pensioners are not provided DA, and what steps are being planned to strengthen retirement security for millions of beneficiaries. His queries reflect the concerns of pensioners who say the current amount is inadequate in today’s economic conditions.
Government Response: No Proposal to Increase Pension Yet
Responding to the unstarred question, Minister of State for Labour and Employment Shobha Karandlaje stated that the government currently has no proposal to increase the minimum pension to Rs 7,500. She cited financial challenges within the Employees’ Pension Fund as the main reason.
According to the government, the most recent actuarial valuation of the fund in March 2019 showed an actuarial deficit, meaning that the fund’s contributions are not sufficient to meet future liabilities. In simple terms, increasing pension outflows without a new funding model could strain the fund and affect long-term sustainability.
While the minister reiterated the government’s intention to provide “maximum benefits” to pensioners, the response did not include any concrete steps or timelines. For many EPS-95 beneficiaries most of whom depend on their monthly pension as their primary income this lack of clarity has caused disappointment and concern.
Pensioners’ organisations have long argued that a decade-old minimum pension figure does not match today’s economic reality. Their demand is not only for a higher pension but also for regular DA, restoration of higher pension options, and broader reforms that ensure dignity in old age.
For now, however, the long-standing demand remains unresolved, and pensioners continue to wait for a solution that can offer financial security in their later years.
