The Employees’ Pension Scheme 1995 (EPS 95) has become one of the most discussed topics in 2025. With lakhs of pensioners depending on it, the scheme run by the Employees’ Provident Fund Organisation (EPFO) ensures a monthly pension to retired employees.
This year, several proposals and reforms have been brought forward, raising hope for pensioners who have long been demanding higher payouts and fairer calculations. Let’s look at the latest updates, who benefits, and the steps you need to take.
Key Proposals and Reforms in EPS 95
| Reform / Proposal | Details | Impact |
|---|---|---|
| Minimum Pension Hike | Proposal to raise pension from ₹1,000 to ₹7,500 per month | Expected to benefit over 60 lakh pensioners from May 2025 |
| Change in Pension Calculation | Pension to be calculated on average salary of last 5 years instead of last year | Prevents sudden drop in pension due to lower last-year salary |
| Service Bonus | Employees with more than 20 years of service to get extra 2 years credited | Higher pension amount for long-term contributors |
| Mandatory Updates | Aadhaar-bank linking, life certificate submission, and updated records | Ensures timely credit of pensions without delay |
Eligibility and Benefits
- Must have worked minimum 10 years in an organisation covered under EPF.
- Pension starts at the age of 58 years (can be reduced pension at 50).
- Pension benefits extend to spouse, children, and orphans in case of the pensioner’s death.
- Higher service years mean better pension benefits.
The Supreme Court in recent years has also allowed certain employees to opt for higher pension contribution based on full salary (basic + DA) instead of the wage ceiling of ₹15,000. Employees who opted for this before the deadline in 2023 will now start seeing increased pension amounts credited from 2025 onwards.
What Pensioners Should Do Now
- Check EPFO Account – Make sure your Aadhaar is linked with your bank account in EPFO records.
- Submit Life Certificate – Can be submitted digitally through Jeevan Pramaan or at banks/post offices.
- Keep EPS Certificate Safe – If you change jobs, transfer it properly to ensure your service years are counted.
- Track Reforms – Keep checking EPFO official website and circulars for real-time updates on pension hikes and reforms.
Conclusion
The proposed reforms in the EPS 95 scheme are aimed at making pensions fairer and more useful for senior citizens. If the minimum pension hike to ₹7,500 is implemented, it will provide huge relief to millions of families struggling with inflation. Pensioners should keep their documents updated and follow EPFO’s official announcements closely to make the most of these benefits.