What is the story about?
EPFO minimum pension: The Employees’ Pension Scheme (EPS), managed by the Employees’ Provident Fund Organisation (EPFO), ensures a monthly pension to eligible
employees after retirement. Introduced in 1995, the scheme aims to offer social security to members working in the organised sector. As of 2025, the minimum monthly pension under EPS remains Rs 1000, a figure fixed by the central government with budgetary support. Amid rising living costs, pensioners and trade unions have been urging the government to review and increase the pension amount. Here’s a complete overview of the current status and official position of the EPFO Minimum Pension 2025.
EPFO minimum pension fixed at Rs 1000 per month
According to the Press Information Bureau (PIB) release dated July 24, 2025, the Government of India continues to provide a minimum pension of Rs 1000 per month under the Employees’ Pension Scheme, 1995. This is supported through budgetary allocation by the Centre, in addition to the 1.16% contribution from the government towards EPS for eligible members earning up to Rs 15000 per month.
How EPS contributions work?
The Employees’ Pension Scheme operates as a defined contribution-defined benefit plan. The pension fund is built from:
8.33% of wages contributed by the employer, and
1.16% of wages contributed by the central government (for wages up to Rs 15000 per month).
This structure ensures that every eligible employee receives pension benefits after fulfilling service conditions under the scheme.
EPFO minimum pension: Current position on pension hike
Multiple representations have been submitted by pensioners and trade unions requesting an increase in the minimum pension from Rs 1000 to Rs 7500 per month. However, the Ministry of Labour & Employment and EPFO have clarified that no decision has yet been taken to raise the minimum pension amount.
The EPFO Minimum Pension 2025 remains at Rs 1000 per month, as confirmed by official government sources. While there is growing pressure from pensioners to raise this amount, no official notification or approval has been issued to increase it so far.
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