The demand to raise the minimum pension under the Employees’ Pension Scheme (EPS-95) from Rs 1,000 to Rs 7,500, as well as to provide dearness allowance and medical facilities, remains unresolved.
On December 15, questions were raised in the Lok Sabha regarding the and implementing pension fixation as directed by the Supreme Court.
The Labour Ministry explained that EPS-95 is funded mainly through employer and government contributions.
Employers contribute 8.33% of wages, while the Centre adds 1.16% of wages, capped at a salary of Rs 15,000 per month. All pension payments are made from this collected fund.
The government said the pension fund is reviewed every year and, as per the last valuation, it is running an actuarial deficit.
This shortfall, it said, makes it difficult to sharply increase the minimum pension or link it to the cost of living. The Centre also said that it already provides extra budgetary support to maintain the Rs 1,000 minimum pension.
Meanwhile, EPS-95 pensioners are demanding a minimum monthly pension of Rs 7,500, along with dearness allowance (DA), family pension and free medical facilities. According to figures shared in Parliament, nearly 78 lakh pensioners across India are struggling financially in old age and have been raising this demand peacefully for several years.
At present, the minimum pension under EPS-95 is Rs 1,000 per month. This amount was fixed in 2014, with the
Since then, the amount has not been revised, even as living costs have risen sharply. Unlike government pensions, EPS pensions are not linked to inflation or DA.
Also, a High Empowered Monitoring Committee studied the possibility of adding DA to EPS pensions. The committee concluded that linking EPS pensions to inflation or providing DA is not financially feasible under the current structure of the fund.
While the government explained its financial position and shared updates on court compliance, it did not announce any timeline for raising the minimum pension or extending DA and medical benefits.
For EPS-95 pensioners, the latest reply offers clarity on the government’s stand but no immediate relief, leaving the wait for a higher pension far from over.