EPS-95 pension hike likely? Minimum pension may rise above Rs 1,000; check who could benefit most

A long-pending demand of EPFO pensioners may finally move forward, with the labour ministry reportedly examining a revision in the minimum monthly pension under the Employees’ Pension Scheme (EPS-95). The present guaranteed pension stands at Rs 1,000 a month, and any upward revision could bring relief to lakhs of retirees receiving low payouts.No official figure has been announced yet. But if the minimum pension is revised to Rs 1,500, Rs 2,000, Rs 2,500 or Rs 3,000, the biggest beneficiaries are expected to be members with lower pensionable salaries and shorter contributory service, according to an ET report.

Why many pensioners are watching this closely

For several EPS members, the pension calculated under the formula remains below Rs 1,000. They currently receive Rs 1,000 only because of the minimum pension guarantee. If this floor is raised, their monthly income could automatically increase.

Who gets EPS pension?

Employees who contributed to EPS and completed at least 10 years of eligible service generally qualify for pension benefits. EPS contributions are calculated on wages up to the ceiling of Rs 15,000 per month, according to an ET report.Some higher-pension members who opted under earlier rules may already receive substantially higher pensions and may not benefit unless the increase is significant.

How EPS pension is worked out

Monthly pension = (Pensionable salary × Pensionable service) ÷ 70Those completing 20 years or more of service get an additional two-year weightage in pensionable service.

If salary was Rs 15,000, what pension is payable?

Average basic pay	Service years	Monthly pension
Rs 15,000	10	Rs 2,142.9
Rs 15,000	15	Rs 3,214.3
Rs 15,000	20	Rs 4,714.3
Rs 15,000	25	Rs 5,785.7
Rs 15,000	30	Rs 6,857.1

This means members already receiving above the revised minimum level may not gain from a smaller hike.

Who benefits under current Rs 1,000 minimum pension?

Average basic pay	Service years	Calculated pension	Gets Rs 1,000 minimum?
Rs 5,000	10	Rs 714.3	Yes
Rs 5,500	10	Rs 785.7	Yes
Rs 6,000	10	Rs 857.1	Yes
Rs 6,500	10	Rs 928.6	Yes
Rs 7,000	10	Rs 1,000	No
Rs 7,500	10	Rs 1,071.4	No

So members below roughly Rs 7,000 average pensionable pay are protected by the current floor.

If minimum pension rises to Rs 1,500

Average basic pay	Service years	Pension	Benefit?
Rs 10,000	10	Rs 1,429	Yes
Rs 11,000	10	Rs 1,571	No
Rs 12,000	10	Rs 1,714	No
Rs 13,000	10	Rs 1,857	No
Rs 14,000	10	Rs 2,000	No
Rs 15,000	10	Rs 2,143	No

If minimum pension rises to Rs 2,000

Average basic pay	Service years	Pension	Benefit?
Rs 10,000	10	Rs 1,429	Yes
Rs 11,000	10	Rs 1,571	Yes
Rs 12,000	10	Rs 1,714	Yes
Rs 13,000	10	Rs 1,857	Yes
Rs 14,000	10	Rs 2,000	No
Rs 15,000	10	Rs 2,143	No

If minimum pension rises to Rs 2,500

Average basic pay	Service years	Pension	Benefit?
Rs 10,000	12	Rs 1,714	Yes
Rs 11,000	12	Rs 1,886	Yes
Rs 12,000	12	Rs 2,057	Yes
Rs 13,000	12	Rs 2,229	Yes
Rs 14,000	12	Rs 2,400	Yes
Rs 15,000	12	Rs 2,571	No

If minimum pension rises to Rs 3,000

Average basic pay	Service years	Pension	Benefit?
Rs 10,000	14	Rs 2,000	Yes
Rs 11,000	14	Rs 2,200	Yes
Rs 12,000	14	Rs 2,400	Yes
Rs 13,000	14	Rs 2,600	Yes
Rs 14,000	14	Rs 2,800	Yes
Rs 15,000	14	Rs 3,000	No

What this means for pensioners

Any increase in the minimum EPS pension is likely to favour retirees with lower salaries and service periods closer to the 10-year eligibility mark. Those already receiving higher monthly pensions may not see much change unless the final revision is much larger.

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