A Welcome Boost for Pensioners
The Employees’ Provident Fund Organisation (EPFO) has announced a major pension hike for EPS-95 pensioners, raising the minimum monthly pension to ₹7,500 from ₹1,000. This change, effective from July 2025, brings huge relief to over 78 lakh retirees across India. The decision follows a Supreme Court order and years of demands from pensioner groups. With rising costs for essentials like food and medicine, this increase will help senior citizens live more comfortably and securely.
Arrears to Be Paid Soon
Along with the pension hike, EPFO is rolling out arrears to cover the difference between the old and new pension amounts. Payments started in July 2025 and will continue until October 2025. The arrears, which include interest, will be credited directly to Aadhaar-linked bank accounts. Pensioners must ensure their bank details and Aadhaar are updated on the EPFO portal to receive payments without delays. EPFO has warned about fake messages promising extra benefits, urging retirees to trust only official sources.
Who Can Benefit?
To qualify for the ₹7,500 pension, retirees must have contributed to EPS-95 for at least 10 years and be registered with EPFO. Those who retired before September 2014 may need to have applied for a higher pension by the June 2023 deadline. Pensioners can check their eligibility on the EPFO Member Sewa portal using their Universal Account Number (UAN) or Pension Payment Order (PPO). If there are issues, EPFO’s regional offices and the EPFiGMS portal are available for support and resolving complaints.
How the Pension Is Calculated
The pension amount is calculated using a simple formula: Pensionable Salary × Pensionable Service ÷ 70. The pensionable salary is the average of the last 60 months’ salary before retirement, capped at ₹15,000 unless higher contributions were made. For example, a retiree with 20 years of service and an average salary of ₹15,000 would get about ₹4,286, but the new minimum ensures they receive ₹7,500. A Dearness Allowance (DA) linked to inflation will also be added, adjusted twice yearly to match rising costs.
Key Details of the EPS-95 Pension Hike
Here’s a quick summary of the pension hike and its benefits:
| Feature | Details |
|---|---|
| Minimum Pension | ₹7,500 per month |
| Arrears Start Date | July 2025 |
| Arrears End Date | October 2025 |
| Eligibility | 10+ years of EPS service |
| Key Requirement | Aadhaar-linked bank account |
Steps to Ensure Smooth Benefits
Pensioners should act fast to avoid missing out on the new pension and arrears. They need to verify their Aadhaar and bank details on the EPFO portal or at regional offices. Those already getting a pension below ₹7,500 will automatically receive the updated amount after verification. The new Centralized Pension Payment System (CPPS), launched in January 2025, allows retirees to withdraw pensions from any bank branch in India. Pensioners should stay cautious of scams and check updates only on EPFO’s official website or social media. This hike is a big step toward better financial support for India’s retirees, ensuring a brighter future.