In a landmark judicial decision, the Supreme Court has sanctioned a significant change to the Employees’ Pension Scheme (EPS-95), amending the minimum monthly pension to ₹7,500. This update is a relief from the persistent stagnation in pension inflows for over 7.8 million pensioners, some of whom have been battling with fixed payouts for almost two decades.
The new pension slab also comprises Dearness Allowance (DA), ensuring that retirees’ income keeps pace with inflation and the cost of living.
Reason EPS-95 Increase Is Important
There was a huge social stigma for EPS-95 beneficiaries who were receiving pensions of ₹1,000 because of the deep poverty line. Now, combined with DA, pensioners will get a minimum of ₹7,500. This would allow a huge chunk of the retired workforce to reclaim their esteem.
This is impactful for pensioners of the railways and public sector units (PSUs) in private sectors, where the post-retirement benefits erode and they later become ineffective.
Implementation Timeline and Eligibility
The new rate structure will be implemented in July 2025, with a one-time retroactive payment up to July 2025. Without any specific application from the pensioners, the revised amounts will be automatically reflected in Aadhaar-linked accounts.
Beneficiaries who retired under EPS-95 and are 58 years or older with a minimum of 10 years of service are eligible. Under the new arrangement, family pensioners and widows are also included.
Dearness Allowance and Future Adjustments
Like other government pension plans, the DA component will be updated every six months, using the All India Consumer Price Index (AICPI). This helps in maintaining the economic relevance of the pension amount.
Subject to inflation rates, pensioners stand to earn more than ₹11,000, which will be beneficial for essentials such as food, healthcare, and rent.
Digital Access and EPFO Support
Through the EPFO Portal and UMANG app, pensioners can check the augmented amounts of their pensions. The EPFO has integrated with NPCI for seamless and timely payments through the NACH system.
For smooth payments, retirees should ensure their bank, Aadhaar, and KYC details are current with EPFO.
Conclusion
This EPS-95 pension hike isn’t merely a revision but an invaluable adjustment that acknowledges the service and sacrifice of countless Indian workers. The EPS-95 revisions coupled with DA adjustments provide an amount of ₹7,500 and prospective increases ensure protection against severe inflation, enabling a dignified existence.