KEY HIGHLIGHTS
- Government says there is no current plan to raise EPS-95 pension to ₹7,500.
- Minimum ₹1,000 pension is funded through extra budgetary support.
- EPS fund has an actuarial deficit, but Centre is covering the gap.
For many EPS pensioners, ₹1,000 per month barely covers basic needs.
From medicines to kirana bills, costs have gone up everywhere.
So when reports started doing the rounds about a possible ₹7,500 minimum pension, expectations rose sharply. Many retirees felt some relief might finally be coming.
However, the government has now made its position clear in Parliament.
No Official Plan to Increase EPS Pension Yet
On December 1, 2025, during the Winter Session of Parliament, the issue was raised in the Lok Sabha.
The question was simple — is the government planning to raise EPS-95 pension from ₹1,000 to ₹7,500 per month?
Union Minister of State for Labour and Employment Shobha Karandlaje responded with a written reply.
Her answer suggests that no such proposal is under consideration right now.
How EPS Pension Is Currently Funded
| Source of EPS Funding | Contribution Details |
|---|---|
| Employer contribution | 8.33% of wages |
| Central government support | 1.16% of wages (up to ₹15,000 salary) |
| Extra budget support | Used to ensure ₹1,000 minimum pension |
Where Does the ₹1,000 Pension Money Come From?
The minister explained that the EPS corpus is built mainly from employer contributions and government support.
All pensions under EPS-95 are paid from this pooled fund.
The fund’s financial health is checked every year through an actuarial valuation.
As per the latest assessment, the EPS fund shows an actuarial deficit as on March 31, 2029.
Government Steps In to Cover the Deficit
Despite the shortfall, pension payments are not at risk.
Why? Because the Central Government provides additional budgetary support.
This extra funding is over and above the regular 1.16% contribution.
It is specifically meant to ensure that pensioners receive at least ₹1,000 per month.
In simple words, without government support, even the current minimum pension would be hard to sustain.
What This Means for the ₹7,500 Pension Demand
Many EPS retirees and unions have been demanding a higher pension, citing inflation and rising healthcare costs.
But the government has hinted that any increase must consider future liabilities and fund health.
The minister said the Centre remains committed to worker welfare.
At the same time, it must ensure the pension system remains financially stable.
For now, pensioners should not expect an immediate hike.
The Bottom Line
The ₹7,500 EPS pension remains a demand, not a decision.
As of now, the government is focused on maintaining the ₹1,000 minimum pension using budgetary support.
If any change comes, it will likely involve long discussions and financial reviews.
Until then, EPS pensioners will have to manage with the existing amount.
