Good News In Diwali? Will EPFO Hike Minimum Pension Under EPS-95 From Rs 1,000 In October? All Details Here

With the October month at the gate, pensioners expectation for a hike in minimum pensions under EPS 1995 scheme has heightened. One of the most expected meeting in next month is of Central Board of Trustees (CBT) of the Employees' Provident Fund Organisation (EPFO). Employees are also expecting change in EPF interest rates or new benefits that could boost household consumptions.

EPS Minimum Pension:

As per reports, the Central Board of Trustees (CBT) of the Employees' Provident Fund Organisation (EPFO) is reportedly expected to meet between October 10th to October 11th. The meeting is expected to take place in Benaluru, and will be chaired Union Labour and Employment Minister Mansukh Mandaviya.

Reportedly, among the agendas is a comprehensive upgrade of EPFO to offer seamless transactions in EPF and EPS accounts. The EPFO portal is expected to be revamped. For this, major tech companies such as Infosys, TCS, and Wipro were shortlisted.

Also, there is likelihood of raising the minimum pension amount from Rs.1,500 to Rs.2,500. This has been a long-pending demand of the trade unions because of rising living costs. The EPFO Central Board of Trustees seems to have finally decided to address their demand, as per HDFC Sky blog.

Earlier, reports also said that minimum pension could rise from Rs 1,000 to Rs 7,000. This was highly demanded by the trade unions and public representatives. However, chances of minimum pension to rise to Rs 7,500 is grim.

EPS-1995

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.

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.

However, 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 Employees' Provident Fund Organisation (EPFO). This information was given by the Minister of State for Labour and Employment Sushri Shobha Karandlaje in written reply to a question in Rajya Sabha in July 2025.