Under the Employees’ Provident Fund Organisation’s (EPFO) Employees’ Pension Scheme (EPS-95), eligible retirees get a minimum pension of Rs 1,000 per month. The amount has been the same for years now despite rising costs and inflation. Now, however, the Indian government is thinking of increasing this minimum monthly pension for private-sector employees to Rs 5,000 per month keeping in mind the rising cost of living and inflation.
As per reports, EPFO’s plan to hike the minimum monthly payout from Rs 1,000 to Rs 5,000 has the support of most pensioners and employees’ unions that feel that this increment should have happened long ago.
No final decision has been officially communicated by the government yet.
If and when implemented, the increased pension will be applicable to employees who have been in service for at least a decade.
If the proposal for pension hike receives approval and gets implemented, it will benefit millions of retirees who depend solely on this pension.
Not surprisingly, all private-sector employees who are subscribed to EPFO, as well as retired and eligible individuals and existing retirees receiving the minimum pension are looking forward to the government’s approval and an official confirmation.
Many meaningful reforms have been introduced by the EPFO in recent years. About two months ago, the Employees’ Enrolment Scheme 2025 was unveiled by the Union Minister for Labour and Employment during the EPFO’s 73rd foundation day celebrations in New Delhi.
It is designed to simplify past compliance issues, encourage transparency, and move closer to a system where every worker receives social security benefits. The enrolment window will remain open till 30 April , 2026.