EPFO Big Alert: Rs 5,000 Or Rs 10,000, Will EPS Minimum Pension Get Hiked From Rs 1,000 In Budget 2026?

Once again the minimum pension under EPF 1995 scheme has started to take rounds. This time however majority are expecting multi-fold hike in minimum pension from Rs 1,000 which has not changed for many years. However, government has not made any official plans to consider hiking EPS pension scheme.

But with the Union Budget 2026 around the corner and expectations of a more 'consumption'-driven budget, hopes are pinned that Finance Minister Nirmala Sitharaman could announce policies and reforms that lead to more money in the hands of common people. And pensioners are seeking some big relief under the EPS scheme accordingly.

There has been a lot of noise regarding hiking the minimum pension under EPS. Earlier, as per many reports, employees' unions, pensioners, and experts suggested a hike to Rs 2,500, Rs 3,000, or Rs 7,500 minimum pension per month. But now reports have said that the government may hike pensions to Rs 5,000 or Rs 10,000, which would be a five-fold or ten-fold increase from the current Rs 1,000 per month.

EPS Minimum Pension Hike To Rs 5,000?

As per Mathrubhumi report, the EPFO is likely planning a major overhaul, which could deliver a substantial financial boost to millions of retired private-sector employees. Emerging reports suggest that the minimum monthly pension may be increased from Rs 1,000 to Rs 5,000, addressing rising inflation, soaring living costs, and the growing financial struggles faced by pensioners.

EPS Minimum Pension Hike To Rs 10,000?

Another report from Asianet News said that the government is seriously considering a pension hike for EPFO members. Sources say a decision on the EPFO pension will be made during or after this year's budget.

This report added that unions are now demanding the minimum pension be raised from Rs 1,000 to monthly pensions between Rs 7,000 to Rs 10,000. They argue that inflation has rapidly increased over the past 11 years, raising costs.

Employees Pension Scheme (EPS) 1995

The Employees' Pension Scheme, 1995, notified under Section 6A of the EPF & MP Act, 1952, provides pensionary benefits to eligible employees of establishments covered under the Act.

It ensures monthly pension on superannuation, early retirement, permanent disability, and offers family pension in case of member's demise. Employers contribute 8.33% of wages and the Central Government contributes 1.16% (subject to wage ceiling) towards the Pension Fund.

Members with minimum 10 years of eligible service are entitled to pension; others may opt for withdrawal benefits or scheme certificate.

Last year, Minister of State for Labour and Employment Sushri Shobha Karandlaje also pointed out that the Government is providing a minimum pension of Rs. 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 the Employees' Provident Fund Organisation (EPFO).

Disclaimer: The views and recommendations expressed are solely those of the individual analysts or entities and do not reflect the views of Goodreturns.in or Greynium Information Technologies Private Limited (together referred as "we"). We do not guarantee, endorse or take responsibility for the accuracy, completeness or reliability of any content, nor do we provide any investment advice or solicit the purchase or sale of securities. All information is provided for informational and educational purposes only and should be independently verified from licensed financial advisors before making any investment decisions.