EPFO Considers Big Pension Boost: Minimum EPS Pension May Rise to ₹5,500

The Employees’ Provident Fund Organisation (EPFO) is considering a significant revision to the minimum pension offered under the Employees’ Pension Scheme (EPS). If this proposal goes through, it will offer much-needed financial relief to millions of private-sector retirees by strengthening their post-retirement income and overall financial security.

Understanding the Need for EPS Pension Increase

Current Pension Amount

Since 2014, the minimum EPS pension rate has remained unchanged at ₹1,000 per month. For more than ten years, employees have received this same amount even as living costs have increased, making an update long overdue.

Proposed EPS Pension Revision

The government is considering raising the minimum EPS pension to ₹5,500 per month. This means an increase of ₹4,500, which would give retirees a much-needed boost in their monthly income. The recommendation is likely to be taken up for approval in the upcoming Central Board of Trustees (CBT) meeting.

Eligibility Criteria for EPS Pension

To receive EPS benefits, employees must have contributed to the EPFO and satisfy certain conditions. Pension payments typically start after age 58. Presently, around 7.8 million employees are enjoying pension benefits under the scheme.

Employee Organisations’ Demands

To keep pace with inflation and ensure post-retirement financial security, PF employee organisations have long demanded an increase in the EPS minimum pension, for which they have submitted memoranda to the Ministry of Labour and Employment.

Interest on PF Deposits

With the pension benefits, the government pays interest on EPF deposits. In FY 2024-25, the interest rate credited to employees’ accounts was 8.25%. Discussions about the rate for the next financial year are already underway, as employees monitor potential advantages.

Conclusion

If approved, the EPS minimum pension increase to ₹5,500 per month will be a major change after 11 years. It will give private-sector retirees better financial stability. No official announcement has been made yet, but employees and pensioners are closely watching the next CBT meeting.