photoDetailsenglish2962497
The Employees’ Pension Scheme (EPS) under EPFO is again in focus as hopes rise for a minimum pension hike ahead of Diwali. The current Rs 1,000 monthly pension, unchanged since 2014, faces mounting criticism from pensioners and unions. Early proposals of raising it to Rs 7,500 now seem unrealistic due to the EPS’s actuarial deficit and heavy government funding burden. A more probable revision is to Rs 2,500 per month. The Central Board of Trustees will meet in Bengaluru on October 10–11, where key announcements — including EPFO portal upgrades, seamless transactions and a possible pension hike — are expected to boost subscribers’ benefits.
https://zeenews.india.com/photos/business/epfo-diwali-2025-update-eps-95-minimum-pension-hike-likely-will-it-be-rs-2500-or-rs-7500-for-lakhs-of-retirees-2962517Updated:Sep 21, 2025, 09:00 AM IST
EPS Minimum Pension Back in Focus
1/7
The Employees’ Pension Scheme (EPS) under the EPFO is once again in the spotlight. With Diwali approaching, expectations are rising that the minimum pension of Rs 1,000 per month — unchanged since September 2014 — could finally be revised upward. Pensioners and employees’ unions have been demanding a hike for years to cope with rising living costs.
Current Status: Rs 1,000 Minimum Pension Since 2014
2/7
EPS, introduced in 1995, offers a minimum pension of Rs 1,000 per month. This amount has remained static for over a decade. Trade unions and public representatives have repeatedly raised the issue in Parliament and through formal representations to the Ministry of Labour and Employment.
Early Proposals: Hope for Rs 7,500 Pension Fades
3/7
At the start of 2025, many stakeholders recommended raising the minimum pension to Rs 7,500. However, the government’s fiscal burden from the scheme and the actuarial deficit in EPS funds make such a large hike unlikely. Minister of State for Labour and Employment Shobha Karandlaje recently confirmed that the EPS is a “Defined Contribution–Defined Benefit” social security scheme funded jointly by employers and the government.
Funding Constraints and Actuarial Deficit
4/7
EPS is financed by employers contributing 8.33 percent of wages and the Centre adding 1.16 percent of wages (up to Rs 15,000 per month). Benefits are paid from these accumulations. As per the fund valuation dated March 31, 2019, EPS faces an actuarial deficit. Even so, the government has been topping up the scheme with additional budgetary support to continue the Rs 1,000 minimum pension.
More Realistic Expectation: Rs 2,500 Minimum Pension
5/7
Given the fiscal realities, the more likely scenario is a modest hike to Rs 2,500 per month. This figure has been a long-standing demand from trade unions and is considered a more practical step than the Rs 7,500 originally sought. EPFO has previously acknowledged that a High-Level Committee recommended Rs 2,000 minimum pension, but the Finance Ministry did not accept it at that time.
Upcoming EPFO Central Board Meeting in October
6/7
The Central Board of Trustees (CBT) of the EPFO is expected to meet in Bengaluru between October 10–11, chaired by Union Labour & Employment Minister Mansukh Mandaviya. Key announcements ahead of Diwali could include a pension hike, new features for EPF/EPS accounts, and upgrades to the EPFO digital platform.
EPFO 3.0: Digital Overhaul on the Cards
7/7
The October meeting may also unveil EPFO 3.0 — a major revamp of the portal to enable seamless transactions in EPF and EPS accounts. Tech giants like Infosys, TCS and Wipro have reportedly been shortlisted for the upgrade. Features such as partial withdrawals through ATMs or UPI could be introduced, improving ease of access for millions of subscribers.