Government Cites Fund Sustainability, No Hike in Minimum Pension
The Indian government has stated that the minimum pension under the Employees' Pension Scheme (EPS), 1995, will remain ₹1,000 per month. This decision comes amidst ongoing demands from pensioners to increase the minimum pension to ₹7,500.
Key takeaways
- The minimum monthly pension under India's Employees' Pension Scheme (EPS), 1995, remains ₹1,000.
- The government cited pension fund sustainability and future liabilities for not increasing the minimum pension to ₹7,500.
- As of March 31, 2026, 85,84,604 pensioners were receiving monthly pensions under the EPS scheme.
- 1,49,806 Pension Payment Orders for higher wage pensions have been issued following a Supreme Court ruling.
The Indian government has indicated that the minimum monthly pension for subscribers of the Employees' Pension Scheme (EPS), 1995, will continue at ₹1,000. This response was provided in the Lok Sabha on August 10, addressing demands from pensioners seeking an increase to ₹7,500.
Minister of State for Labour and Employment Shobha Karandlaje stated that the government provides the current ₹1,000 minimum pension through budgetary support, in addition to the regular contributions to the pension fund. The government cited the need for pension fund sustainability and management of future liabilities as reasons for not announcing an increase.
The issue was brought forward by Lok Sabha MP Ramvir Singh Bidhuri, who inquired about plans to raise the minimum pension and sought details on pensioners and those receiving higher pensions following a Supreme Court ruling. Karandlaje confirmed that as of March 31, 2026, 85,84,604 pensioners were receiving monthly pensions under the EPS scheme, with a total disbursement of ₹15,819.28 crore by that date.
Pensioners had previously protested on August 5 in New Delhi, arguing that the ₹1,000 pension is insufficient given the rising cost of living. The government's response emphasized its commitment to social security while balancing it with the financial health of the pension fund.
Regarding pensions on higher wages, following a Supreme Court judgment on November 4, 2022, eligible employees can opt for pension based on higher salaries above the ₹15,000 monthly wage ceiling. The Employees' Provident Fund Organisation (EPFO) has issued directions for joint options. As per Karandlaje's statement, 1,49,806 Pension Payment Orders (PPOs) for higher wage pensions have been issued to retired individuals.
Sources reviewed
Project Chintan independently synthesized and analyzed information cross-checked across the sources listed above.
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