EPFO Shocker: For a long time, private-sector employees covered under the Employees’ Provident Fund (EPF) had hoped for a major change in their pension. Many organisations and workers demanded that the minimum EPS pension be increased to ₹7,500 per month. However, a recent clarification from the central government has left millions of employees disappointed.
Government Declines Proposal to Increase EPS Pension
During the winter session of Parliament, an important question was raised in the Rajya Sabha regarding the possibility of increasing the minimum pension under the Employees’ Pension Scheme (EPS). In response, Minister of State for Finance Pankaj Chaudhary clearly stated that the government has no proposal to increase the EPS pension amount.
This statement has put an end to the growing expectations among EPF members. Many employees believed that the government might announce an increase in the pension amount in Budget 2026, but the latest clarification suggests that no such change is being considered.
Why the Demand for Higher Pension ?
The current minimum EPS pension is ₹1,000, a figure that was last revised in 2014. Over the years, rising inflation and increasing expenses have made it difficult for retired employees to manage their daily living with this small amount.
Additionally, after the formation of the 8th Pay Commission, employee unions strengthened their demand for a higher pension, hoping the government would consider revising the pension structure. However, the absence of any proposal indicates that there will likely be no increase in EPS pension in the near future.
What Employees Should Know
The decision has affected nearly 78 million EPFO members across the country. The EPF scheme continues to offer annual interest on contributions, but the pension benefit under EPS remains unchanged.
The government clarified that while EPF interest is deposited each financial year based on the contributions made, the pension amount under EPS is fixed and will remain ₹1,000 until a new policy or proposal is introduced.
Conclusion
The latest update makes it clear that employees expecting a higher EPS pension—from ₹1,000 to ₹7,500—will have to wait longer. There is currently no active proposal to increase the pension, and any chances of an announcement in the coming budget appear unlikely. For now, employees are advised to continue monitoring official EPFO notifications for future changes.
