EPS Pension: Is Rs 1,000 Minimum Pension Fair After Over 30 Years Of Contribution?

The Employee Pension Scheme, 1995 (EPS-95) beneficiaries, having been raising their demand to increase the minimum pension for the last nine years, are now set to start a protest at Jantar Mantar, Delhi, on March 9. The 3-day protest will start on March 9, 2026, to raise demands to hike the minimum pension under the EPS-95 from the current Rs 1,000 per month to a Rs 7,500 monthly pension. The pension scheme covers employees in public sector undertakings (PSUs) of the central and state government, private sector companies, mills, cooperatives, among others.

The National Agitation Committee (NAC), representing around 8.1 million pensioners from these establishments, has been raising EPS pensioners’ demands for nearly a decade, but the government has been ignoring the problems of the elderly pensioners and making hollow claims of "Sabka Saath Sabka Vikas", citing the Committee, reported PTI.

Is A Rs 1,000 Minimum Pension Fair After Over 30 Years Of Contribution?

According to the Committee, despite having contributed a part of the salary towards EPS for more than 30 years of service, pensioners are receiving a meagre amount, an average monthly pension of Rs 1,171.

The Committee questions the government for offering a pension under various schemes without beneficiaries' contributions, but in the case of EPS, it shows an actuarial deficit. The Committee alleged that due to the grossly inadequate pension amount and lack of free healthcare, an average of 200 to 250 pensioners are dying prematurely across the country every day.

Reportedly, the pensioners from all states will participate in the protest, where various Members of Parliament (MPs) will also participate. Their key demands are increasing the minimum monthly pension to Rs 7,500 and a dearness allowance in addition to it, and free healthcare for pensioners and their spouses.

While government employees covered under the old pension scheme (OPS) are eagerly awaiting the 8th Central Pay Commission (CPC) recommendations, and a significant hike in their salary and other benefits, those who were covered under the EPS-95 of the Employees’ Provident Fund Organisation (EPFO) are struggling for basic necessities.

Employees’ Pension Scheme 1995 (EPS-95)

The government fixed a minimum pension of Rs 1,000 under the EPS-95 in 2014. It aimed to provide a monthly pension to retirees from the organised sector. It is mandatory for employees earning up to Rs 15,000 per month and optional for others. Note that out of the 12 per cent contributions to the EPFO by an employee and employer, only 8.33 per cent of the employer’s contribution goes toward EPS. The remaining 3.67 per cent of the employer contribution and the full 12 per cent of the employee contribution go to the employee provident fund (EPF).

Notably, the government provides financial support (1.16 per cent of the wages) through budgetary allocation to ensure the minimum pension. However, the minimum pension of Rs 1,000 may not be enough for a person to sustain without any other support, considering the inflation in general and medical inflation in particular.

The NAC, which represents 8.1 million pensioners and over 75 million working employees from various industrial sectors covered under EPFO, has been raising concerns about the inadequate amount, demanding a hike.

The question to hike EPS has also been raised several times in the parliament. 

Government’s Reply So Far

On one such question asked in the winter session in the Lok Sabha, on December 1, 2025, the Minister of State for Labour and Employment, Shobha Karandlaje, gave a written reply, saying, “All benefits under the scheme are paid out of such accumulations. The fund is valued annually as mandated under paragraph 32 of the EPS, 1995, and as per the valuation of the fund as on 31.03.2019, there is an actuarial deficit.”

According to a recent reply by the Minister, there are currently over 4.7 million pensioners out of 8.2 million total pensioners under EPS-95, receiving a pension of less than Rs 9,000 per month.