If you’ve been waiting for some good news from EPFO, this might be it. The government could soon increase the minimum pension under the Employees’ Pension Scheme (EPS) — and it’s something millions of retirees have been hoping for since 2014.
Imagine living on just ₹1,000 a month in today’s world. Sounds impossible, right? That’s the harsh reality for many EPS pensioners across India. But now, things may finally change.
The Big Meeting That Could Change Everything
The Central Board of Trustees (CBT) — the highest decision-making body of the Employees’ Provident Fund Organisation (EPFO) — is all set to meet in Bengaluru on October 10–11, 2025. According to reports, one of the top items on the agenda is a proposal to increase the minimum EPS pension from ₹1,000 to ₹2,500 per month.
If approved, this would be the first pension hike in over a decade. The current ₹1,000 minimum was fixed way back in 2014 — when prices were far lower than they are today.
Now, with the rising cost of living and inflation eating away at savings, pensioners say this small monthly amount simply doesn’t cover basic needs.
Why This Pension Hike Matters So Much
For many retirees, the EPS pension is the only source of regular income after years of service. With food, medicine, and rent prices climbing, ₹1,000 barely lasts a few days.
Various employee unions and pensioners’ associations have been pushing for a higher pension — some even demanding it be raised to ₹7,500 per month. While that might not happen immediately, the proposed increase to ₹2,500 would still bring significant relief.
Think about it this way — a 150% rise could mean the difference between surviving and living with dignity for thousands of senior citizens who dedicated their lives to the workforce.
What Else Is on the Agenda?
The CBT meeting isn’t just about pensions. Another major topic is the EPFO 3.0 digital project, aimed at modernizing the system and making it easier for employees and pensioners to access services online.
If implemented properly, this could mean faster claim settlements, fewer document hassles, and real-time pension updates — a big step forward for transparency and convenience.
How Is the EPFO Pension Calculated?
If you’ve ever wondered how your EPS pension is determined, here’s the simple formula used by EPFO:
Pension = (Pensionable Pay × Pensionable Service) ÷ 70
Let’s break that down:
- Pensionable Pay = Average of your last 60 months’ basic pay + dearness allowance (capped at ₹15,000/month).
- Pensionable Service = Total number of years you’ve worked in a job covered under EPS.
- Note: Any service period of 6 months or more counts as a full year.
- You must have at least 10 years of continuous service to qualify for a pension.
💡 Example:
If you worked for 35 years with a pensionable pay of ₹15,000, your monthly pension would be:
(₹15,000 × 35) ÷ 70 = ₹7,500 per month
That’s the upper limit. However, most workers get much less because their pay or service years are lower — and that’s why the minimum pension increase is so important.
What Happens If You Retire Early?
If an employee leaves before turning 58, they can choose to withdraw the pension amount or receive a reduced pension. The pension officially starts from age 58, unless you opt for an early pension at a lower rate.
Why This Decision Could Be a Game-Changer
This isn’t just about numbers — it’s about dignity and recognition. Pensioners have been waiting for years for a fair adjustment that reflects today’s economy.
If the EPFO Board approves the hike to ₹2,500, it will not only improve financial security for millions but also restore faith in the system that was designed to protect employees after retirement.
And with the digital transformation of EPFO 3.0, the future could bring smoother services, faster resolutions, and fewer complaints — a much-needed upgrade for India’s social security ecosystem.
🧾 Frequently Asked Questions
1. What is the current minimum pension under EPFO’s EPS-95 scheme?
Currently, the minimum pension is ₹1,000 per month, fixed since 2014. The proposal under discussion aims to increase it to ₹2,500.
2. When will the EPFO announce the new pension amount?
The decision is expected after the CBT meeting in Bengaluru on October 10–11, 2025. Official confirmation may come later through a government notification.
3. What is the formula for calculating EPS pension?
Pension = (Pensionable Pay × Pensionable Service) ÷ 70. Pensionable pay includes your last 60 months’ average salary and DA (up to ₹15,000).