Imagine trying to manage monthly expenses on just ₹1,000. Rent aside, even basic medicines can wipe that out in days. Yet, for over 80 lakh retirees, this is the reality under the Employees’ Pension Scheme (EPS-95). As 2026 approaches, the demand for an EPS-95 pension hike has once again taken centre stage.
The scheme, managed by the EPFO, promises lifelong monthly income to private-sector retirees. But here’s the uncomfortable truth: the minimum pension has stayed frozen at ₹1,000 since 2014. More than a decade. Prices, meanwhile, haven’t waited.
How the EPS-95 Pension Works Today
Let’s first understand the structure.
Under EPS-95, 8.33% of the employer’s contribution goes towards the pension fund, calculated on wages capped at ₹15,000 per month. Your final pension depends on two things:
- Number of years you worked
- Average salary during the last phase of service
To keep the minimum pension alive, the government provides subsidies. Even so, payouts remain painfully low for many retirees who spent decades in factories, offices, and workshops.
Why Pensioners Are Demanding a Hike in 2026
Here’s the thing. Inflation doesn’t care about pension formulas.
Pensioner unions argue that ₹1,000 barely covers groceries for a week, let alone healthcare. Their main demands for EPS-95 pension hike 2026 include:
- Raising the minimum pension to ₹7,500 or more
- Linking pensions with Dearness Allowance (DA)
- Ensuring dignity and financial independence in old age
They often point out that government employees receive periodic pension revisions, while EPS retirees are left behind despite contributing for years.
What the Government Is Saying Right Now
In replies given in Parliament around December 2025, the Labour Ministry made its position clear. There is no approved proposal to increase the minimum EPS pension at this time.
The reason? Actuarial deficits. According to the government, the EPS fund does not generate enough returns to support higher payouts without major reforms or additional budgetary support.
In simple words, raising pensions without fixing the funding gap could threaten the scheme’s long-term survival.
Higher Pension Relief: A Partial Win for Some
There has been one positive development.
After Supreme Court directions, EPFO processed most applications for higher pensions based on actual salaries, rather than the old wage ceiling. Many eligible retirees now receive improved pension amounts, offering meaningful relief.
But this benefit applies only to a section of pensioners, not everyone.
What Could Change in 2026?
As of now, no EPS-95 pension hike for 2026 is officially confirmed. Still, discussions continue around:
- Increasing the wage ceiling
- Additional government subsidies
- Structural reforms to strengthen the pension fund
Much depends on Budget 2026 and political priorities.
For pensioners, the safest approach is simple: follow official EPFO notifications and ignore social media rumors.
Frequently Asked Questions
Is there any confirmed EPS-95 pension hike in 2026?
No. As of now, the government has not approved any increase in the EPS-95 minimum pension for 2026. Discussions are ongoing, but nothing is officially announced.
Why is the EPS-95 minimum pension still ₹1,000?
The government cites fund sustainability issues. According to actuarial assessments, the EPS fund lacks sufficient surplus to support a higher guaranteed pension without reforms or extra funding.
What is the higher pension option under EPS?
Following Supreme Court rulings, eligible retirees can receive pensions based on actual salaries instead of the wage cap. EPFO has processed most applications, providing higher payouts to qualifying members.