One of India’s biggest social security programs is the Employees’ Pension Scheme (EPS), under authority of Employees’ Provident Fund Organisation (EPFO). Employees under this plan get a monthly pension that is determined by their pay and length of service. The EPS, that was introduced on 16 November 1995, is intended to give organised sector workers a steady income beyond retirement.
The Central Government has proposed to increase the wage ceiling under EPF and EPS 95 from Rs. 15,000 to Rs. 21,000 in the Union Budget 2025 and this will significantly EPFO Pension Increase 2025. Currently, the maximum pension under EPS 95 is Rs.7,500 per month, that may reach Rs.10,050 if the new limit is implemented. Also, the EPS-95 NAC has demanded GOI to increase the minimum pension from Rs.1,000 to Rs.7,500.
EPFO Pension Increase 2025
In a commendable statement, the Employees’ Provident Fund Organisation (EPFO) increased the amount of the EPF pension that retirees are eligible to receive. For millions of retirees who rely on their Employees’ Pension Scheme (EPS-95) for financial support, this decision undoubtedly provides some respite. With this pension rise, pensioners will be able to receive a larger monthly payout, improving their quality of life.
For those who have been working for so long, the 2025 EPFO pension boost is a big comfort since it guarantees them a living. The quality of life for the elderly people will undoubtedly improve as the minimum pension is set at Rs.7,500 plus DA. If you would like to learn more about the latest developments regarding the EPS-95 and EPF pension plans.
EPFO Pension Increase 2025 Eligibility Requirements
Employees must fulfil EPFO Pension Increase 2025 Eligibility Requirements for an EPS pension. First, he or she ought to have served for at least ten years. Additionally, as EPS pensions start at age 58, the employee must be of this age. Along with having continuously contributed to the EPS system during their work, the employee must also be a registered member of the EPFO.
Employers match the 12% basic salary contributions made by EPF members to the EPFO-regulated provident fund and employer’s contribution is split between the EPF program (3.67%) and the EPS (8.33%). Under the EPS-1995, the Centre has established the minimum pension at Rs 1,000 per month since 2014. However, there have been persistent calls to increase this pension to at least Rs 7,500 a month.
EPFO Pension Increase Amount 2025
It has recently been announced that, in addition to Dearness Allowance (DA), the minimum guaranteed pension amount for EPFO members has increased to Rs.7,500. This rise, will go a long way, is a start towards meeting the retirees’ long-standing desire for a sum that is equitable enough to cover the rising costs of daily life. In the Budget 2025, Finance Minister has not raised the standard deduction cap.
Rumor had it that government will increase the standard deduction amount to provide middle-class taxpayers with tax relief. Salaried persons, retirees, and family pensioners will be eligible to claim the same deduction for the fiscal year 2025–2026 as they did for the current fiscal year 2024–2025.
Benefit and Reason of EPFO Pension Rise
There has been a long-standing desire for the EPS-95 pension boost. Citing inflation, medical costs, and the cost of living, pensioners and trade organisations have been calling for an increase in the minimum pension amount for years. The idea was accepted by the government and EPFO board members following discussion at a few sessions, providing retired staff with the long-overdue benefit.
All registered EPS-95 pensioners under the Employees’ Pension Scheme (EPS-95) are eligible for the pension increase, which is applicable in each and every worthy instance. These pensioners thus former employees contributed to the Employees’ Provident Fund (EPF) throughout their working years, both in the public and commercial sectors. The pension change would enable the retirees to better address their daily financial needs.
New EPFO updates you need to know in 2025
Under the Employee’s Provident Fund (EPF), pension, and group insurance plans, the Employees’ Provident Fund Organisation (EPFO) is responsible for the hard-earned money of almost 7 crore active contributors. This number is gradually increasing as the workforce continues to grow. According to the EPFO’s November 2024 provisional payroll statistics, there was a net addition of 14.63 lakh members, that represents a 4.88% rise over November 2023.
This increase is a result of both growing job possibilities and increased employee benefit understanding, which has been bolstered by EPFO’s aggressive outreach initiatives. Even while EPFO is important for protecting workers’ financial stability, its members have long had to deal with issues including slow fund transfers, claims that are denied because of inconsistencies in member information, and administrative roadblocks when trying to get pensions.
However, EPFO has been putting a lot of effort into improving its operational effectiveness. The organisation has implemented a number of changes to streamline procedures, cut down on delays, and enhance customer experience, ranging from continuous attempts to update its IT systems to the introduction of a Centralised Pension Payment System (CPPS).
| Official Website | Click Here |
| Homepage | KeralaCoBank.Com |
Samarth Choudhary is a Chief Editor at keralacobank.com. He has overall editorial experience of 10 years in online media. He has completed his graduation from University of California and masters in Finance from University of Dallas in year 2010. His major interest and expertise is in Finance, Taxes, Government Aid and Schemes. His Major focus is to help users to get relevant information which are published on keralacobank.com in easy and precise form.