EPS 95 Pension Yojana: Lakhs of pensioners across India may soon receive a long-awaited increase in their monthly pension. According to reliable sources, the Central Government is actively reviewing a proposal to raise the minimum pension amount under EPS 95 from ₹1,000 to ₹8,500. This update could benefit over 78 lakh senior citizens currently receiving pensions through the Employees’ Pension Scheme 1995 (EPS 95) operated by the Employees’ Provident Fund Organisation (EPFO).
While no official notification has been issued yet, the proposal is expected to be tabled in the 2025 Union Budget, with implementation likely starting from August 2025. Here’s everything you need to know about the proposed EPS 95 pension hike, its benefits, eligibility criteria, and how to claim the updated amount.
What Is EPS 95 Pension Scheme?
The Employees’ Pension Scheme (EPS) 1995 is a government-backed social security scheme managed by the EPFO. It provides a monthly pension to employees working in government or organized sectors after they retire.
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Features of EPS 95:
Employees become eligible after 10 years of service Pension starts at age 58, No direct contribution from the employee Employer contributes 8.33% of basic salary Central Government contributes 1.6% Currently, the minimum pension amount is ₹1,000, which was fixed in 2014. But due to inflation and rising living costs, this amount is no longer sufficient.
Why ₹8,500 Minimum Pension Is Needed?
At present, retirees under EPS 95 receive a mere ₹1,000 per month, which is not enough to manage basic expenses like food, rent, healthcare, or utilities.
Pensioners have long demanded an increase to ₹7,500 or ₹8,500 and Multiple protests and memorandums have been submitted to the Finance Ministry With the 8th Pay Commission expected soon, this hike may precede broader reforms
If the proposed ₹8,500 minimum pension is approved, it will help pensioners:
- Lead a self-reliant and dignified life
- Reduce financial dependence on family
- Tackle rising inflation and healthcare costs
EPS 95 Pension Hike Proposal Highlights
| Proposal | Details |
| Minimum Pension Hike | ₹1,000 → ₹8,500 (proposed) |
| Beneficiaries | Over 78 lakh pensioners |
| Proposal Status | Under review by Finance Ministry |
| Expected Implementation | From August 2025 |
| DA Linking | Likely to be linked with inflation |
| Withdrawal Options | UPI and ATM from late 2025 |
| Payment Mode | Direct transfer to bank accounts |
What Is the Government’s Stand?
For years, the central government ignored the demand to increase EPS 95 pensions. But with increasing public pressure and upcoming budget announcements, the Finance Ministry is now seriously evaluating this proposal.
Additionally, this move could complement the 8th Pay Commission to be implemented around 2026, signaling the government’s commitment to employee welfare and post-retirement dignity.
EPS 95 Digital Reforms in 2025
To make pension access easier, EPFO is working on the following digital initiatives:
UPI-enabled pension withdrawal And Then ATM access for EPS pension funds then Real-time status tracking of pension claims or Faster zonal-level verification and approvals and KYC-based online application system. This will ensure transparency, speed, and convenience for pensioners across India.
Benefits of Increasing EPS 95 Minimum Pension
If the proposal to increase the minimum pension to ₹8,500 is passed, it will bring several advantages to retired employees:
| Benefit | Impact |
| Monthly Pension Hike | ₹7,500–₹8,500 instead of ₹1,000 |
| Increased Purchasing Power | Ability to afford food, healthcare, rent, etc. |
| Digital Pension Access | Via UPI, ATM, mobile apps |
| Poverty Alleviation | Helps pensioners live independently |
| Inflation Protection | DA-based automatic increments expected |
| Ease of Access | Online verification and real-time status updates |
When Will the ₹8,500 EPS Pension Be Implemented?
The EPS 95 pension revision proposal is currently under final review. If included in the Union Budget 2025, the hike will likely be implemented from August 2025.
Tentative Timeline:
- Proposal Review: July 2025
- Budget Announcement: End of July 2025
- Implementation Start: August 2025
- UPI/ATM Access Launch: By December 2025
Eligibility for ₹8,500 Pension under EPS 95
To receive the revised pension, you should have fulfill the following criteria:
You are an EPS 95 beneficiary Then You have retired after 58 years of age And You have completed 10+ years of eligible service, Your Aadhaar, bank, and KYC details are updated on the EPFO portal
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How to Update Details to Get New EPS 95 Pension?
Follow these steps to make sure your pension is updated and credited without delay:
Step-by-Step Process:
- Visit: https://https://www.epfindia.gov.in
- Login using UAN and password
- Update your:
- Aadhaar number
- Bank account
- PAN
- KYC
- Upload Demand Notice (if required)
- Submit for approval
- Once verified, your Pension Payment Order (PPO) will be issued
- Pension credited directly to your bank account