EPFO and the Employees’ Pension Scheme 1995 (EPS-95) play a crucial role in providing financial security for employees in India after they retire. In 2025, we can expect some significant changes to these schemes that will positively impact millions of pensioners.
Right now, pensioners under EPS-95 receive a pretty low minimum pension, which makes it tough for them to make ends meet. With this in mind, the government is looking into raising the pension amount. This article will break down the latest updates on EPFO Pension 2025, what they mean, and how to apply.
EPFO and EPS 95 Pension 2025: Important Updates
Scheme Name: EPS 95 (Employees’ Pension Scheme 1995)
Current Salary Limit: Rs 15,000
Proposed Salary Limit for 2025: Rs 21,000
Minimum Pension: Rs 1,000 (Demand: Rs 7,500)
Maximum Pension: Rs 7,500 (expected to rise to Rs 10,050 with new limits)
Pension Calculation: (Pensionable pay × Service period) ÷ 70
How to Apply: Online (EPFO Portal) or Offline (Form 10D)
The EPS-95 National Struggle Committee (NAC) has been advocating for pension reforms for private sector workers for quite some time. This committee represents around 78 lakh retired pensioners and 7.5 crore employees from various industries. Their main requests include:
– A minimum monthly pension of Rs 7,500.
– Inclusion of Dearness Allowance (DA).
– Comprehensive medical coverage for EPS members and their spouses.
On January 10, 2025, EPS-95 pensioners met with Finance Minister Nirmala Sitharaman to push for raising the minimum pension to Rs 7,500 per month. Sitharaman assured them that the government is taking their demands seriously and will work on measures that benefit private sector employees. She also promised to give careful consideration to the proposals from EPFO.
What’s unique about the 2025 budget?
The central government is looking to raise the wage ceiling for EPF and EPS 95 from Rs 15,000 to Rs 21,000 in the Union Budget 2025. This change means that pensioners will see an increase in their monthly pension. Right now, the highest pension under EPS 95 is Rs 7,500 a month, but with the new cap, it could go up to Rs 10,050.
How is the pension calculated?
With the EPFO’s proposed salary limit increase, employees and pensioners can expect some nice benefits:
Higher pension amounts: The new salary cap of Rs 21,000 means pensions will be calculated using this formula: {(21,000 * )/ 70}. For instance, someone with 35 years of service could receive a pension of Rs 10,050.
Boost in employer contributions: As the salary limit rises, the employer’s contribution to EPF (8.33%) will also go up, which will help strengthen the pension fund.