The Employees’ Provident Fund Organisation (EPFO) is set to announce a major increase in the minimum pension under the Employees’ Pension Scheme (EPS) 1995. This hike is expected to be a welcome Diwali gift for lakhs of retirees across India.
What Is the Current Situation?
Currently, the minimum pension under the EPS-1995 scheme stands at ₹1,000 per month. This rate has remained unchanged for many years, despite rising inflation and increasing living costs affecting pensioners.
Expected Pension Increase
In the upcoming Central Board of Trustees meeting scheduled for October 2025, the EPFO is likely to approve a rise in the minimum monthly pension amount. The proposed increase may raise the pension to ₹2,500 per month from ₹1,000. There are also stronger demands for a hike up to ₹7,500 per month, reflecting pensioners’ urgent need for better financial security.
This increase aims to support millions of retirees who rely on the EPS for their livelihood. Over 6 million pensioners are expected to benefit from this change.
Why Is This Pension Hike Needed?
The pensioners’ groups and trade unions have long demanded this adjustment due to the rising costs of basic essentials. Pensioners face difficulty meeting everyday expenses with the current pension rates. Hence, the government and EPFO are working to provide better post-retirement financial stability.
EPFO 3.0 Digital Upgrade
Alongside the pension hike, EPFO is also planning a digital upgrade named EPFO 3.0. This new system will make transactions easier for members, allowing features like partial withdrawals through UPI and ATMs. These tech improvements aim to improve pensioners’ access to funds, especially during festive seasons like Diwali.
What Should Pensioners Do Next?
Pensioners should ensure their details like Aadhaar, bank accounts, and e-KYC are updated in EPFO records. This will help them receive the new pension benefits without any delay.
Conclusion
The anticipated minimum pension hike from ₹1,000 to possibly ₹2,500 or even ₹7,500 is excellent news for EPFO pensioners. It reflects the government’s commitment to supporting retirees amid inflation. If approved, this hike will provide much-needed financial relief and security, making Diwali 2025 a happier festival for millions of pensioners.
