Gov gets demand to increase minimum pension from ₹1,000 per month

The Ministry of Labour and Employment has received representations from various stakeholders, including trade unions and public representatives, seeking an increase in the minimum pension under the Employees’ Pension Scheme, 1995 (EPS-95) from the current level of ₹1,000 per month.

Minister of State for Labour and Employment Shobha Karandlaje said this in a written reply to a question in the Lok Sabha on Monday. She also stated that nearly 47.04 lakh pensioners covered under the Employees’ Pension Scheme, 1995 are drawing a monthly pension of less than ₹9,000. Data from the Employees’ Provident Fund Organisation (EPFO) shows that the total number of pensioners under EPS-95 currently stands at 82,11,182.

Shobha Karandlaje said that 47,04,270 active member pensioners are receiving pensions below ₹9,000 per month. She confirmed that the government has received multiple representations urging an enhancement of the minimum pension amount under the scheme.

The Employees’ Pension Scheme, 1995 is a defined contribution–defined benefit social security programme. Its corpus is built through contributions of 8.33 per cent of wages by employers, along with a 1.16 per cent contribution by the Central Government on wages up to ₹15,000 per month. All pensionary benefits under the scheme are paid from this fund.

The minister noted that the government currently provides a minimum pension of ₹1,000 per month to EPS-95 pensioners through budgetary support. This is in addition to the government’s 1.16 per cent contribution to the scheme paid to the EPFO.

She further stated that the pension fund is actuarially valued every year in accordance with paragraph 32 of EPS-95. The purpose of this valuation is to assess the long-term financial sustainability of the fund by examining expected inflows from contributions and projected outflows in the form of benefits.

Reiterating the government’s position, Karandlaje said that India remains committed to ensuring comprehensive social security coverage through the EPF Scheme, 1952, EPS-95 and the Employees’ Deposit-Linked Insurance (EDLI) Scheme. This commitment, she added, is guided by the need to balance member welfare with the sustainability of the funds and their future liabilities.

Published on February 10, 2026