Many private sector employees and pensioners in India are excited about the latest buzz around EPS-95 (Employees’ Pension Scheme 1995). This scheme, run by EPFO, gives monthly pension after retirement.
Right now in January 2026, fresh reports suggest a possible big change: raising the minimum monthly pension from ₹1,000 to ₹5,000 or more. This matters a lot because the current ₹1,000 amount hasn’t changed since 2014, while living costs have gone up a lot.
No official confirmation has come yet from the government or EPFO. It’s still in discussion stage, likely needing budget approval.
What Is EPS-95 Scheme?
EPS-95 is a pension plan for employees in covered organizations. Employers put 8.33% of salary (up to ₹15,000 cap) into the pension fund. After 10 years of service and age 58, you get lifelong monthly pension.
Current Minimum Pension Amount
The minimum pension is still ₹1,000 per month for eligible retirees. This applies if your calculated pension is lower. Many get only this basic amount due to low wages or shorter service.
Why the Talk of a Big Update Now?
Recent media reports (early January 2026) say EPFO is looking at a major hike to ₹5,000 to help with inflation. Pensioner groups have demanded more for years, and some even asked for ₹7,500.
Government and EPFO’s Stand
The Labour Ministry said in late 2025 there is no approved plan yet for a hike to ₹7,500. Any change needs Central Board approval and budget support. The fund has actuarial issues, so it’s careful.
Who Benefits from a Possible Hike?
If approved, millions of existing and future pensioners would get better support. It would help low-income retirees meet daily needs like food, medicine, and bills.
How Pension Is Calculated
Pension = (Average salary of last 60 months × Pensionable service) / 70. Minimum is ₹1,000. Higher contributions (above cap) can give more after recent higher pension options.
EPS-95 Minimum Pension Status Comparison
| Status | Current Amount | Proposed/Expected | When It Might Happen | Notes |
|---|---|---|---|---|
| Existing Minimum Pension | ₹1,000/month | – | Since 2014 | Guaranteed floor |
| Recent Demands | – | ₹7,500/month | Under discussion | Pensioner unions pushing |
| Latest Reports (Jan 2026) | – | ₹5,000/month | Possible in future budget | EPFO considering, no confirmation |
| Higher Pension Option | Varies | Higher based on actual salary | Already available | For those opted earlier |
What to Do While Waiting
Check your EPFO passbook online for updates. Keep service records correct. If eligible, explore higher pension if you haven’t.
In summary, the big EPS-95 update for 2026 is mostly about hopeful discussions to raise the minimum pension from ₹1,000 to ₹5,000 or higher, but nothing is final yet. The current rules stay the same. Visit the official EPFO website (epfindia.gov.in) or your regional office to track real news, update your details, and plan your retirement wisely. Stay informed through trusted sources only—good changes may come soon!