Increasing pension under EPS-95: Govt provides ₹1000 over 1.16% contribution, says Labour Ministry

The Government is providing a minimum pension of ₹1000 per month to pensioners in addition to the budgetary support of 1.16% of wages, the Minister of State for Labour and Employment Shobha Karandlaje said in a written reply to a query in the Rajya Sabha on Thursday (July 24, 2025.

"However, the Government is providing a minimum pension of ₹1000 per month to the pensioners under the EPS, 1995 by providing budgetary support, which is in addition to the budgetary support of 1.16 per cent of wages provided annually towards EPS to Employees’ Provident Fund Organisation (EPFO)," the minister said.

The minister was replying to the following queries:

(a) Whether the demand to enhance minimum pension in Employees Pension Scheme (EPS-95) is under consideration of the Government for a long time;

(b) if so, by when Government will take a decision, especially in view of mounting pressure from the trade unions and the court judgments;

(c) the constraint in increasing the EPF pension when there are sufficient funds available in the corpus fund and the accumulated unclaimed funds; and

(d) whether Government would expedite a decision in view of coming festival season?

Responding to the above, the minister said, "Representations have been received from various stakeholders including trade unions and public representatives to increase the minimum pension under the Employees’ Pension Scheme (EPS), 1995 from existing ₹1000 per month."

The EPS, 1995 is a “Defined Contribution-Defined Benefit” Social Security Scheme. The corpus of the Employees’ Pension Fund is made up of

• contribution by the employer @ 8.33 per cent of wages; and

• contribution from Central Government through budgetary support @1.16 per cent of wages up to an amount of ₹15,000 per month.

"All benefits under the scheme are paid out of such accumulations. The fund is valued annually as mandated under paragraph 32 of the EPS, 1995, and as per the valuation of the fund as on 31.03.2019, there is an actuarial deficit," the minister said.