EPS Pension: Will EPFO Hike Penson From Rs 1,000 To Rs 7,500 After Diwali? DA, EPF Wage Ceiling In Focus Too

The hot topic of raising pensions in the employees' pension scheme (EPS) is back on the table as the Bharatiya Mazdoor Sangh's (BMS) national office-bearers are reportedly planning to meet between November 27 and 28 in Vadodara to discuss and demand key issues faced by the gig workers. Among the key issues are hiking pensions, wage ceilings and variable dearness allowances.

The BMS are an affiliate of the RSS, and as per a PTI report, here are key demands that they would be discussing for improving the living costs of the EPFO account holders.

1. On the top of the list is hiking pensions from Rs 1,000 per month to Rs 7,500 under the EPS-95 scheme. While they also demand to link the pensions with the variable dearness allowance (VDA) and Ayushman Bharat Yojana.

2. Secondly, BMS demands doubling the ceiling of Employees' State Insurance (ESI) to Rs 42,000 from currently Rs 21,000.

3. Additionally, they also seek to double the wage ceiling from Rs 15,000 to Rs 30,000 under the employees provident fund (EPF) scheme.

4. Appropriate government should declare Bonus on full wages/ salaries as notified by the new labour codes.

5. Bonus calculation limit should be increased from Rs 7,000.

6. Increase Gratuity calculation from 15 days wages to 30 days wages without any ceiling limits.

7. Formula based Minimum wages as per the increasing cost of living.

8. Increasing the monthly honorarium to Scheme workers like Aanganwadi, ASHA Karmi, Mid-day meal, National Health Mission workers etc.

9. Equal pay for equal work to all types of Contract workers.

10. Punish contractors and man power supply agencies for wage theft.

11. Five-day banking system.

12. Filling the vacant posts in all the Government Services; conducting an Indian Labour Conference at the earliest date.

13. Restoration of Old Pension Scheme (OPS).

In August 2026, BMS said that it requests the Central Government to initiate discussions with Central trade unions about the future of all the Scheme workers, which cross a 10 million workforce; most are skilled workers. A new policy, as per the changing world of work, is needed.

It added, "No other country has such a massive workforce in the unorganised sector. So, the BMS demands that the government work out an exclusive policy suitable to India."

EPS-1995 Pension:

The hiking of pensions under EPS-95 has been a long-standing demand of pensions, retirees and unions.

The EPS, 1995 is a "Defined Contribution-Defined Benefit" Social Security Scheme. The corpus of the Employees' Pension Fund is made up of (i) contribution by the employer @ 8.33 per cent of wages and (ii) contribution from Central Government through budgetary support @ 1.16 per cent of wages up to an amount of Rs.15,000/- per month, as per government website.

In a latest update on October 31, 2026, the government said, the EPS 2026 provides monthly pension benefits to eligible members on superannuation, retirement or disability. It also provides pension benefits to eligible dependents of deceased members, including spouses, children and other eligible family members.

The Centre's data added that pension support has expanded alongside membership. EPFO paid pensions to 51.04 lakh pensioners during 2014-15. Till September 2026, around 82 lakh pensioners are receiving pension benefits. This represents an increase of over 31 lakh pensioners.

In September 2026, EPFO increased the wage ceiling for mandatory coverage under the EPF account to Rs 25,000 from Rs 15,000.

Employees joining an establishment at wages above Rs. 15,000 per month are not automatically covered under the mandatory EPF framework, subject to the applicable statutory provisions. With the revised ceiling, employees drawing wages between Rs. 15,000 and
Rs. 25,000 per month will become eligible for mandatory coverage, expanding the reach of formal social security, as per Dr. Mansukh Mandaviya, Union Minister of Labour & Employment and Youth Affairs & Sports.