EPS 95 Pension Increase: What the Latest Government Reply Reveals
In December 2025, the Government of India responded to an unstarred question in the Lok Sabha regarding the long-pending demand for an EPS 95 pension increase. Many pensioners have been requesting that the minimum pension be raised from the current ₹1,000 to ₹7,500 per month, along with the addition of Dearness Allowance (DA).
The official reply from the Ministry of Labour and Employment provides important clarity on these issues.
Understanding the EPS-95 Scheme
The Employees’ Pension Scheme (EPS), 1995 runs on a Defined Contribution–Defined Benefit model. This means pension benefits depend on the contributions made by employers and the government over time.
The fund consists of:
- 8.33% employer contribution
- 1.16% central government contribution (on wages up to ₹15,000/month)
All pension payouts come from this accumulated fund, which undergoes an annual actuarial valuation as mandated under Paragraph 32 of EPS-95.
Government Stance on Increasing the Minimum Pension
When asked whether the government plans to raise the minimum pension from ₹1,000 to ₹7,500, the Ministry did not confirm any such proposal.
According to the official reply:
- The latest actuarial valuation (as of 31.03.2019) shows an actuarial deficit in the pension fund.
- Due to this financial condition, an immediate large-scale EPS 95 pension increase is not being considered.
However, the government continues to provide additional budgetary support to ensure the minimum pension of ₹1,000 per month is maintained.
Why EPS-95 Pensioners Do Not Receive DA
A common question among pensioners is why Dearness Allowance is not provided under EPS-95, despite rising inflation.
The government clarified that:
- EPS-95 is fund-based, and all benefits must come from existing contributions and fund health.
- Since the fund currently faces an actuarial deficit, adding DA is not financially feasible.
Is the Government Taking Steps to Improve Pension Adequacy?
While pensioners find the current amount insufficient for basic living, the government stated that it is committed to ensuring maximum benefits within the financial limits of the scheme.
This means:
- Any enhancement, including an EPS 95 pension increase, must align with fund stability and future liabilities.
- The government cannot introduce benefits that could jeopardize the sustainability of the pension fund.
Government Response to Pensioners’ Demands
Several EPS-95 pensioners’ organizations have submitted repeated demands regarding pension hikes, DA inclusion, and financial support.
The government acknowledged:
- It has taken cognizance of these demands.
- Decisions will be made keeping in view the financial health of the fund and the long-term viability of EPS-95.
However, no concrete action or approval for a pension increase has been announced so far.
Conclusion
The latest Lok Sabha response reinforces that while the government is aware of pensioners’ concerns, a significant EPS 95 pension increase—such as raising the minimum pension to ₹7,500 or adding DA—remains unlikely in the immediate term due to fund deficits.
Still, the government maintains that it is committed to balancing pensioners’ welfare with prudent financial management, and further decisions will depend on future valuations and fund performance.