The Employees’ Pension Scheme (EPS-95) supports over 80 lakh private sector retirees with monthly pensions. As of December 2025, strong demands persist for a minimum pension hike in 2026, but the government cites fund deficits, leaving no confirmed increase yet.
What is EPS-95 Pension?
EPS-95, launched in 1995, provides lifelong monthly pensions to organized sector employees after retirement. Employer contributions of 8.33% fund it, with the current minimum at ₹1,000 per month since 2014. Pensions calculate based on service years and average salary.
Current Minimum Pension
The minimum pension remains ₹1,000 monthly as of late 2025. Government subsidies support this level despite actuarial deficits in the EPS fund. No Dearness Allowance applies, unlike government pensions.
Demands for Hike in 2026
Pensioners’ unions demand raising the minimum to ₹7,500 or more, plus DA, to combat inflation and rising costs. Protests and petitions highlight struggles with healthcare and essentials on low payouts.
Government’s Latest Position
In December 2025 Parliament replies, the Labour Ministry stated no proposal exists for increasing the minimum due to fund deficits from 2019 valuations. Sustainability concerns prioritize over immediate hikes.
| Feature | Details |
|---|---|
| Current Minimum Pension | ₹1,000 per month |
| Demanded Minimum | ₹7,500 + DA (by unions) |
| Beneficiaries | Over 80 lakh pensioners |
| Fund Status | Actuarial deficit |
| Last Update | December 2025 (no hike approved) |
| Calculation Formula | (Pensionable Salary × Service Years) / 70 |
Outlook for Pensioners
EPS-95 Pension Hike 2026 remains uncertain without reforms like higher contributions or subsidies. Ongoing reviews may bring changes, but no guarantees exist.
Monitor official EPFO portals and government announcements for accurate updates on EPS-95 pensions in 2026.
Also read: EPF Interest Rate 2025: Government Confirms 8.25% for 7 Crore Subscribers