Pensioners Await Good News
Millions of retirees under the Employees’ Pension Scheme (EPS-95) are hopeful for a pension hike as the festive season nears. In a recent Parliament session, the government addressed questions about raising the minimum pension, currently set at ₹1,000 per month. Trade unions and pensioner groups have been pushing for an increase to ₹7,500, citing rising living costs. The government’s response has sparked excitement, but no final decision has been confirmed yet.
Government’s Response in Parliament
In Lok Sabha, MPs Vaiko and M. Shanmugam raised concerns about the low EPS-95 pension. They asked if the government plans to increase it soon, especially with festivals approaching. The Minister of State for Finance, Pankaj Chaudhary, said the government has received many requests from trade unions and pensioners for a hike. While no timeline was given, the government assured it provides budgetary support to maintain the ₹1,000 minimum pension and is reviewing the demands.
Why Pensioners Need a Hike
The current ₹1,000 monthly pension, set in 2014, is too low to meet basic needs. With prices of food, medicine, and other essentials rising, pensioners struggle to make ends meet. Trade unions argue that a ₹7,500 pension with Dearness Allowance (DA) linked to inflation would help retirees live with dignity. A parliamentary panel, led by Basavaraj Bommai, also urged the Labour Ministry to act quickly, noting the “manifold increase” in living costs.
Proposed Changes and Benefits
Reports suggest the government is considering a pension hike to ₹7,500 or even ₹8,500, with DA adjustments based on the All India Consumer Price Index (AICPI). This would benefit nearly 78 lakh pensioners. The DA would ensure pensions rise with inflation, similar to government employee pensions. If approved, the hike could start by May 2026, with no need for pensioners to reapply. They must update bank details and Aadhaar for smooth payments.
| Current Pension (₹) | Proposed Pension (₹) | DA Adjustment |
|---|---|---|
| 1,000 | 7,500–8,500 | Linked to AICPI |
Challenges and Concerns
While the news is promising, challenges remain. The government highlighted an actuarial deficit in the EPS-95 fund, which could limit the hike. Funding a ₹7,500 pension for millions would cost billions, straining public finances. Some trade unions suggested a smaller ₹5,000 hike, but pensioners called it insufficient. The Labour Ministry is conducting a third-party evaluation of the scheme, expected to finish by December 2025, to ensure long-term stability.
What Pensioners Can Expect
Pensioners are hopeful but cautious, as no official announcement has been made. The government’s commitment to review demands keeps the festive spirit alive. Pensioners should:
- Check EPFO portals for updates on implementation.
- Ensure bank and Aadhaar details are updated to avoid payment delays.
- Expect a possible hike to ₹7,500 or ₹8,500 with DA by mid-2026.
- Benefit from inflation-linked pensions for better financial security.
Until a final decision is made, pensioners are advised to stay informed through official EPFO channels. This potential hike could bring much-needed relief, making festivals brighter for retirees across India.