The Central Government has proposed a major increase in the Employees’ Pension Scheme (EPS), aiming to raise the minimum monthly pension to ₹7,500. This move is expected to help millions of private sector employees who have long demanded better retirement benefits.
What Is EPS and Why Was a Hike Needed?
The Employees’ Pension Scheme was started in 1995 to provide a monthly pension to private sector employees after retirement. However, the pension amount remained very low — mostly between ₹1,000 to ₹2,000 — which made it hard for retirees to manage daily expenses. Rising inflation and growing demands from employees and unions led the government to consider this increase.
Highlights of the EPS Pension Hike
- New Proposed Minimum Pension: ₹7,500 per month
- Beneficiaries: Over 6 crore EPFO members
- Government Support: Extra funding expected to support the hike
- Implementation Status: Awaiting official notification
- Back Benefits: Possible arrears for eligible pensioners
Current vs Proposed Pension Comparison
| Particulars | Current Pension | Proposed Pension |
|---|---|---|
| Minimum Monthly Pension | ₹1,000–₹2,000 | ₹7,500 |
| Maximum Monthly Pension | ₹5,000 (approx.) | ₹10,000–₹12,000* |
| Employee Contribution | 12% of salary | No change |
| Employer EPS Contribution | 8.33% of ₹15,000 | May be revised |
*Exact amount yet to be confirmed.
Who Will Benefit?
The increase will help:
- Retired private sector employees
- Workers with steady EPS contributions
- Employees opting for higher pension under court ruling
- Dependents of deceased pensioners
- Employees nearing retirement
To qualify, one must have at least 10 years of EPS service and be 58 years or older.
Supreme Court’s Role
In 2022, the Supreme Court ruled in favor of higher EPS contributions based on actual salary, not just ₹15,000. This decision helped pave the way for the pension hike.
What Pensioners Should Do
- Check eligibility on the EPFO Member Portal
- Update Aadhaar, PAN, and bank details
- Keep all EPS records safe
- Avoid middlemen claiming faster approvals
Conclusion
The EPS pension hike to ₹7,500 is a big step toward better retirement security for private sector workers. If implemented smoothly, it can reduce financial stress and improve the lives of millions of retirees in India.