In April 2025, the Supreme Court directed an increase in the minimum pension in the Employees Pension Scheme (EPS-95) to 7 500 from 1 000 effective August 2025. This is beneficial to 78 lakh pensioners and this is fulfilling long-term demands.
Dearness Allowance Introduced
The decision has an allowance (DA) that is pegged on the All India Consumer Price Index (AICPI), modified every six months. Pensions might be 50 percent of the DA, making them reach 11,250 of the retiree keeping pace up with inflation.
Who Qualifies for the Hike
Pensioners with 10+ years of service in firms with 20+ employees qualify. Individuals whose monthly pension is already above 7,500 will continue to receive their existing amount as a way of fairness in all members of EPS-95.
No Reapplication Needed
The 7500 retirement will automatically be applied by the EPFO in August 2025. To have a smooth flow of payments, pensioners are required to update the KYC and bank details on the EPFO portal.
Fiscal Challenges Addressed
The increase is an addition of 1.5 lakh crore to the budget of EPFO and it would need government subsidies. The directive of the Supreme Court provides the immediate implementation of the directive, as it is the priority of the financial dignity of retirees even under fiscal limitations.
Higher Pension Option Progress
Higher pensions are optional after 2014 to employees who make actual contributions of over 8.33% (over 15,000) to their salaries, a ruling by the Supreme Court in 2023. The online system goes through epfindia.gov.in to process the applications.
EPS-95 Pension Projections
| Pension Type | Current Pension (₹) | New Pension (₹) | With 50% DA (₹) |
|---|---|---|---|
| Minimum Pension | 1,000 | 7,500 | 11,250 |
| Mid-Level Pension | 2,000 | 7,500 | 11,250 |
| Higher Pension | 7,500+ | Unchanged | Unchanged + DA |
Secure Your Benefits
Retirees are relieved by the EPS- 95 pension raise that begins in August 2025. Note Payments require Aadhaar-linked KYC to be submitted at epfindia.gov.in. Monitor EPFO announcements for further reforms.
Also read: DA Hike 2025: ₹18,000 Basic Salary Rises to ₹28,440 with Allowances