Summary of this article
The demand for a hike in the minimum pension under the EPS-95 scheme has been ongoing for years.
The HEMC recommended a raise in the minimum pension in 2018.
The Minister gave a standard reply, highlighting EPS-95 fund sustainability.
The demand for a hike in the minimum pension under the Employees' Pension Scheme (EPS) has long been made by different groups. The questions asked by different Parliamentarians from time to time; however, the government’s response remains standard. Recently, when Parliamentarian N K Premanchnadran asked whether the government had conducted any study regarding the difficulties faced by EPF Pensioners due to the meagre minimum pension and the action taken by the Government to increase the minimum pension, the government’s reply remained the same.
Premachandran also asked whether the government has studied the recommendations by the High-Empowered Monitoring Committee (HEMC) for pension revision and if there is any proposal under consideration to implement the recommendations.
In a written reply, the Minister of Labour and Employment, Mansukh Madaviya, gave the standard response, “Employees' Pension Scheme, 1995 (EPS 95) is a 'Defined Contribution-Defined Benefit' Social Security Scheme. The corpus of the Employees' Pension Fund is made up of (i) contributions by the employer @ 8.33 per cent of wages; and (ii) 1.16 per cent contribution from Central Government on wages up to Rs. 15,000/- per month. All benefits under the scheme are paid out of such accumulations. The fund is valued annually as mandated under paragraph 32 of EPS, 1995.”
Note that the government had prescribed the minimum pension of Rs 1,000 under the EPS-95 scheme, with effect from September 1, 2014. When demands for a minimum pension hike rose in 2018, the government formed HEMC for evaluation and review of the scheme (EPS-95).
HEMC Recommendations
According to a written reply in Lok Sabha on February 4, 2019, by Santosh Kumar Gangwar, the then Minister of State for Labour and Employment, the HEMC submitted its report on December 21, 2018. The reply mentioned the Committee’s recommendations as:
• “Increase of Minimum Monthly Member Pension.
• Period over which the Average Pensionable Salary is calculated.
• Restoration of the commuted value of the pension
• Re-introduction of the provision for commutation of pension.
• Restoration of the provision of Return of Capital.
• Linking the monthly pension to the cost-of-living index.
• Payment of pension on higher/actual wages to employees of exempted establishments.”
Recently, the Parliamentary Standing Committee also suggested a comprehensive review and revision of the minimum pension. On the question of whether the government is considering implementing the HEMC recommendations, the reply remained unrelated.
Mandaviya’s reply read, “The Government of India is committed to providing robust social security coverage through EPF Scheme, 1952, EPS-95 and EDLI Schemes being run by EPFO, to the members of these schemes, taking into consideration the sustainability of the respective funds as well as the future liabilities thereon.”
However, on the higher pension payment part, he replied that to implement the Supreme Court’s judgment regarding higher pension on November 4, 2022, the government had provided an online request submission facility. It received around 15.24 lakh applications as of January 31, 2025, and disposed of more than 99.2 per cent of applications as of March 9, 2026.
The Minister replied that demand letters have been issued to the eligible applicants. In case of pensioners, those who have deposited the demand amount and Form 10D have been issued the Pension Payment Order (PPO). For those in service, the PPO for a higher pension will be issued to them upon attaining the age of 58.
However, the question of a hike in the minimum pension remained insufficiently addressed.
