In 2025, there was a major update in the Employees Pension Scheme (EPS-95) that has been conducted under that Employees provident fund organization (EPFO). The Supreme Court has endorsed an increase in pension and the minimum pension entitled to the people will now be 7,500 instead of 1,000 per month. It will bring relief to about 78 lakh pensioners in India given that the move will come into effect in August 2025.
Why the Hike Matters
EPS-95 retirees live out of low pensions which are barely enough to meet their basic needs, such as food, medicine and rent. The new 7,500 pension along with Dearness Allowance (DA) is greater thus creating more financial stability. Under this reform, retirees are rewarded and the growing cost of living is considered to guarantee decent retirement.
Who Qualifies for the Hike
The revision of the pension is also easy to be eligible to. The pensioners will be EPS-95 members, with 10 years of service and that are older than 58. The others who get pensions of the central government are exempted The pensions above 7500 will remain unaffected but the existing pensions below 7500 will be automatically upgraded.
Dearness Allowance Benefits
Deeriness Allowance inclusion brings change of game. DA is adjusted twice a year in alignment with the All India Consumer Price Index so that pensions keep up with inflation. To illustrate take the case of a 42 percent DA rate, which would increase the monthly pension knot to 10,650 rupees making it a dramatic improvement in the purchasing power of the retiree.
How to Claim the Revised Pension
Pensioners need not re-apply the hike. Verifying the latest information about bank accounts, Aadhaar linking and KYC records with EPFO will ensure the successful payment. Monitoring the EPFO portal will ensure delays are beaten Starting August 2025, payments should start automatically.
Pension Hike Impact Table
| Category | Previous Pension (₹) | Revised Pension (₹) | Annual Pension with 42% DA (₹) |
|---|---|---|---|
| Minimum Pensioners | 1,000–3,000 | 7,500 | 1,27,800 |
| Mid-Level Pensioners | 3,001–5,000 | 7,500 | 1,27,800 |
| Above ₹7,500 Pensioners | No change | No change | No change |
A Step Toward Dignified Retirement
The EPS-95 pension increase is an historic measure which has raised the financial security of millions of people. Pensioners are advised to check their details, so that they would receive timely payments. Not only does this increase revenues but, it also provides a boost to India in terms of social security.
Also read: Fitment Factor Hike 2025: Big Salary Boost Awaits, See Complete Information