Will EPFO Pension Increase in 2025? All Eyes on Government Review

EPFO Pension Increase in 2025:

There has been a growing demand to raise the minimum pension amount under the Employees’ Pension Scheme (EPS) from ₹1,000 to ₹7,500 per month. Finally, some progress is being made in this direction. A parliamentary committee, led by BJP MP Basavaraj Bommai, has asked the Ministry of Labour to complete a third-party review of the EPS scheme. This review should be finished by the end of 2025.

Why is a EPFO Pension Increase in 2025 Review Necessary?

The EPS-95 scheme was introduced in 1995 to provide retired employees with a stable monthly income. In 2014, the minimum pension was set at ₹1,000, and it has not changed since then. However, due to rising inflation and cost of living, this amount is no longer sufficient for pensioners to meet their basic needs.

Now, for the first time in nearly 30 years, the government has started an external review of the EPS. The Ministry of Labour has already issued a Request for Proposal (RFP), and the review work is underway. The committee wants the review to be completed on time.

What Are Pensioners Demanding?

Pensioners under the EPS-95 scheme have long demanded that the minimum pension be increased to ₹7,500 per month. They also want a dearness allowance (DA) to help manage the effects of inflation. Before the 2024–25 budget, pensioners met with Finance Minister Nirmala Sitharaman. According to the National Agitation Committee for EPS-95, she assured them that their concerns would be seriously considered.

Past Proposals

Back in 2020, the Labour Ministry proposed increasing the minimum pension to ₹2,000, but the Finance Ministry did not approve it. The same proposal came up again during discussions for the 2024–25 budget.

What Lies Ahead?

The parliamentary committee believes that the rising cost of living makes it necessary to raise the pension. If the review supports the pensioners’ demands, the government may consider increasing the minimum EPS pension to ₹7,500 soon.

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