In a major relief for millions of retired employees, the Employees’ Provident Fund Organisation (EPFO) is planning a significant hike in pension payouts under the Employee Pension Scheme (EPS). Reports suggest that the minimum pension, currently at a meager ₹1,000 per month, could be tripled to ₹3,000 or even raised to ₹7,000 by 2025!
This game-changing move will directly benefit over 36 lakh pensioners who currently struggle with the bare minimum pension amount. With rising inflation and increasing living costs, the existing pension has become insufficient for retirees to meet their basic needs.
Why This Pension Hike is Crucial?
- Inflation Crisis – Over the past decade, consumer prices have surged by 72%, making ₹1,000 pension woefully inadequate.
- Long-Pending Demand – Trade unions and pensioners’ associations have been protesting for years, demanding a dignified pension.
- Government vs. Private Pension Disparity – Unlike government pensioners, EPS beneficiaries do not receive Dearness Allowance (DA), worsening their financial struggles.
- Lifeline for Retirees – For many, this pension is their only source of income post-retirement.
Expected Changes in EPFO Pension Scheme (2025)
- Minimum Pension Hike – Likely to increase from ₹1,000 to ₹3,000 or ₹7,000 per month.
- DA (Dearness Allowance) Inclusion – Pensioners may finally get inflation-linked adjustments.
- Revised Employer Contribution – EPS funding structure might be adjusted to support higher payouts.
Who Will Benefit?
- 36.6 lakh pensioners currently receiving the minimum ₹1,000 pension.
- Total 78.5 lakh EPS pensioners under EPFO.
- Future retirees under the EPS-95 scheme.
When Will This Change Take Effect?
The final decision is expected by April-May 2025, post-approval from the Finance Ministry and EPFO.