The Employee Pension Scheme (EPS-95) in India is at the point of a major transformation in 2025 when there will be significant change in the scheme. As costs of living have been eating up the pockets of pensioners the proposed increase of a minimum pension up to 7500 Rs per month per month would give millions of pensioners some relief and dignity. This pension reform, which the retirees have been demanding long, will fill the Second World War period outdated pensions lacuna with current economic realities, and provide hope to nearly 78 lakh EPS-95 pensioners all over the country.
A Parliamentary Reform Is Finally Shaped
EPS-95 was introduced to the employees by Employees Provident Fund Organisation (EPFO) in 1995 to provide them retirement within the private sector. Nevertheless, the minimum pension is currently 1000 Rupees which has long been insufficient to cover the bare necessities because of inflation. By the year 2025, a Supreme Court ruling allowed it to jump to a radical minimum of 7,500 rupees with an added Dearness Allowance (DA), to help combat-increasing expenses.
Who Gains With The Increase?
To be supplied with a revised pension, the pensioner must demonstrate at least ten years of work in the establishment, which employs at least 20 people. Current pensioners receiving above 7500 will immeadiately continue to receive this amount, and all others will automatically be brought to 7500. The eligibility criterion is also not complicated as it entails valid UAN and KYC details meaning most retirees will have a smooth rollout.
Advanced Choices
EPFO is to provide pension increase between May and June 2025, and no reapplication has to be done by the existing pensioners. It is proposed that pensioners should update their bank accounts and also verify the Aadhaar and the KYC to ensure that there are no delays. The Supreme Court has made it mandatory and this is the reason there is such a quick delivery of the increased pensions.
| Aspect | Details |
|---|---|
| New Minimum Pension | 7,500 per month Dearness Allowance (DA) |
| Eligibility to participate: EPS-95 members with 10 or more years of service working in firms with 20 or more employees | |
| Implementation, without reapplication, MayJune 2025 | |
| Approximately 78 lakh pensioners are located in the country | |
| Fiscal Support Partial government subsidy to retain stability of the EPFO corpus reported |
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