In India, Employees Pension Scheme (EPS-95) run by the Employees Provident Fund Organisation (EPFO) covers the employees in the private sector. It started in 1995 and it offers monthly pension to all retirees upon attaining age 58. The scheme is applicable to employees of companies that have 20 or more employees and thus gives them security after retirement in terms of finances.
Why Was the Hike Needed?
The EPS-95 pensions were low at 1000 a month on average and could not cover current inflationary prices. Pension levels, due to inflation, healthcare costs, and everyday life, were left behind, which made the lives of people difficult. Pensioners led by organizations such as the EPS-95 Pensioners- Sangharsh Samiti pressed the government to reform pensions in order to adjust to the current economic conditions.
Details of the 2025 Pension Hike
In April 2025, the Supreme Court ratified a substantial increase in EPS-95 pension. Minimum pension was increased to 7500 per month against a level of 1000 per month. Further Dearness Allowance (DA) was put in effect which is connected to the All India Consumer Price Index (AICPI). This hike reaches close to 78 lakh pensioners in India.
Who Qualifies for the Hike?
The wage increase will be on the old age pension of the EPS-95 members aged 58 years and above and having a service of 10 years. Widows as well as family pensioners also are eligible. The pensioners earning less than 7,500 will get an increment but those earning higher pensions will not be affected by the raise.
How Does Dearness Allowance Work?
Dearness Allowance sets pensions on par with inflation. It is updated twice a year in January, and July after AICPI rates. A 50 percent DA rate on a 7,500 pension increases it by 3,750, which makes it 11,250 monthly. This makes the pensions relevant to such rising living costs.
When Will the Hike Take Effect?
Minimum pension and inclusion of DA change started in April 2025 rupia of 7500. Past due arrears are being settled. The announced DA changes most likely will be in September or October, with the next change likely take place in July 2025. Pensioners are advised to look at the EPFO portals to the update.
How Does the Hike Help Pensioners?
The increased pension and DA provide significant financial relief. Key benefits include:
- More funds for essentials like food, medicine, and utilities
- Improved financial stability, e.g., a ₹1,500 pension rises to at least ₹7,500 plus DA
This supports better living standards for retirees.
Why Monitor EPS-95 Updates?
Being in the know of the EPS-95 changes would allow the pensioners to plan financially well. Monitoring changes in DA, and payment timetables can assist in budgeting of medical and daily expenses. Pensioners can depend on EPFO web site or credible sources of news as far as the latest is concerned.
Also read: DA Hike August 2025: What Central Govt Employees & Pensioners Can Expect