**Summary:**
This document summarizes the response provided by the Minister of State for Labour and Employment, Sushri Shobha Karandlaje, to Lok Sabha Unstarred Question No. 3636, addressed on August 11, 2025, concerning the Employees' Pension Scheme 1995 (EPS95). The question inquired whether the government proposed increasing the minimum pension under EPS95 from Rs. 1000 to Rs. 7500 per month, and if so, the anticipated timeline for implementation.
The Minister's response clarifies that the EPS, 1995 is a Defined Contribution-Defined Benefit Social Security Scheme financed through employer contributions (8.33% of wages) and Central Government budgetary support (1.16% of wages up to Rs. 15,000 per month). Benefits are disbursed from accumulated funds.
The response indicates an actuarial deficit in the Employees' Pension Fund, as per the valuation on March 31, 2019. Despite this deficit, the government provides a minimum pension of Rs. 1000 per month to EPS95 pensioners through budgetary support, supplementing the annual 1.16% budgetary allocation to the Employees Provident Fund Organisation (EPFO). The response does not explicitly state whether there is a proposal to increase the minimum pension to Rs. 7500.
Key Entities Referenced
MINISTRY OF LABOUR AND EMPLOYMENT: A ministry of the Government of India responsible for labour and employment policies.
LOK SABHA: The lower house of the Parliament of India.
SHRI CHANDRA PRAKASH JOSHI: Member of Lok Sabha who asked the question related to EPS95.
EPS95: Employees' Pension Scheme, 1995, a social security scheme in India.
SUSHRI SHOBHA KARANDLAJE: Minister of State for Labour and Employment who provided the answer in the Lok Sabha.
Employees Pension Fund: The fund created under EPS, 1995, which consists of contributions from employers and the Central Government.
Employees Provident Fund Organisation EPFO: An organisation that manages the Employees Provident Fund and related schemes, including EPS95.
Central Government: The Union Government of India, which provides budgetary support to the EPS95 scheme.
GOVERNMENT OF INDIA
MINISTRY OF LABOUR AND EMPLOYMENT
LOK SABHA
UNSTARRED QUESTION NO. 3636
TO BE ANSWERED ON 11.08.2025
EPS-95 FOR PENSIONERS
†3636. SHRI CHANDRA PRAKASH JOSHI:
Will the Minister of LABOUR AND EMPLOYMENT be pleased to
state:
(a) whether there is any proposal by the Government to increase the
minimum pension under the EPS-95 from Rs. 1000 to Rs. 7500 per
month; and
(b) if so, the time by which the pensioners are likely to get the benefit
therefrom?
ANSWER
MINISTER OF STATE FOR LABOUR AND EMPLOYMENT
(SUSHRI SHOBHA KARANDLAJE)
(a) & (b): The EPS, 1995 is a “Defined Contribution-Defined Benefit”
Social Security Scheme. The corpus of the Employees’ Pension Fund
is made up of (i) contribution by the employer @ 8.33 per cent of
wages; and (ii) contribution from Central Government through
budgetary support @ 1.16 per cent of wages up to an amount of Rs.
15,000/- per month. All benefits under the scheme are paid out of such
accumulations. The fund is valued annually as mandated under
paragraph 32 of EPS, 1995 and as per the valuation of the fund as on
31.03.2019, there is an actuarial deficit.
However, the Government is providing a minimum pension
of Rs. 1000 per month to the pensioners under the EPS, 1995 by
providing budgetary support, which is in addition to the budgetary
support of 1.16 per cent of wages provided annually towards EPS to
Employees’ Provident Fund Organisation (EPFO).
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