A recent disclosure by the Ministry of Labour and Employment has brought renewed attention to the financial distress faced by millions of retired workers under the Employees’ Pension Scheme, 1995 (EPS-95).
As of March 31, 2025, out of 8.15 million pensioners enrolled in the scheme, more than 4.9 million—over 60%—receive monthly pensions below ₹1,500.
The data, presented in Parliament and reported by multiple outlets, underscores the growing inadequacy of India’s social security framework amid rising living costs and inflationary pressures.
EPS-95, administered by the Employees’ Provident Fund Organisation (EPFO), was designed to provide post-retirement income to workers in the organized sector.
However, the scheme’s current payout structure has come under criticism for failing to meet even basic subsistence needs.
EPS-95 Pension Distribution: A Grim Breakdown
The government’s data paints a sobering picture of pension distribution under EPS-95:
- 4.915 million pensioners earn less than ₹1,500 per month
- 7.87 million (96%) receive below ₹4,000
- 8.09 million (99%) get less than ₹6,000
- Only 53,541 pensioners (0.65%) draw more than ₹6,000 monthly
The minimum pension under EPS-95 remains ₹1,000—a figure unchanged since its revision in 2014.
With inflation eroding purchasing power and healthcare costs rising, retirees are increasingly struggling to make ends meet.
Trade Unions Demand Urgent Reform
In response to the crisis, trade unions and pensioner associations have intensified their demands for a revision of the minimum pension.
A 17-point charter submitted to the Labour Ministry includes a call to raise the minimum monthly pension to ₹9,000.
Advocates argue that the current payouts are not only inadequate but also undermine the dignity and welfare of retired workers who contributed to the economy for decades.
The All India EPS-95 Pensioners’ Sangharsh Samiti has been vocal in its campaign, organizing protests and submitting memoranda to government officials.
Their demands also include linking pensions to inflation and ensuring family pension coverage for dependents.
Government Response on EPS-95 and EPFO Finances
Minister of State for Labour and Employment, Shobha Karandlaje, informed the Rajya Sabha that total pension disbursals under EPS-95 rose to ₹23,028 crore in FY 2023–24, up from ₹22,113 crore in the previous year.
Meanwhile, EPFO’s income has also grown:
- Interest income increased to ₹58,669 crore from ₹52,171 crore
- Other income (including penal damages and interest) rose to ₹864 crore from ₹564 crore
- Funds in inoperative accounts stood at ₹10,898 crore as of March 2025 (provisional)
Despite these figures, the government has cited actuarial deficits in the pension fund as a barrier to increasing the minimum pension.
Officials maintain that any enhancement must be financially sustainable and backed by long-term projections.
Policy Outlook and Social Implications
The pension crisis under EPS-95 raises broader questions about the adequacy of India’s retirement systems.
With over 99% of pensioners receiving less than ₹6,000 per month, the scheme fails to provide meaningful financial security.
Experts warn that without structural reforms, the country risks deepening inequality among its aging population.
The issue also intersects with debates on universal social protection, especially for informal sector workers who remain outside the purview of EPS-95.
As India’s demographic shifts toward an older population, the need for robust and inclusive pension systems becomes increasingly urgent.
Note: We are also on WhatsApp, LinkedIn, and YouTube to get the latest news updates. Subscribe to our Channels. WhatsApp– Click Here, YouTube – Click Here, and LinkedIn– Click Here.
