The Labour Minister recently cleared up confusion about whether the minimum pension under the Employees’ Pension Scheme (EPS) will go up from Rs 1,000 a month. He explained that it’s staying the same right now because the pension fund needs to remain financially stable in the long run.

What the Minister Said

In response to a question in Parliament, Mansukh Mandaviya noted that the government already covers a guaranteed Rs 1,000 monthly payout for qualifying retirees through extra budget money. This comes on top of the regular 1.16 percent wage contribution the government makes to the EPS fund.

Any change to raise it higher would depend on keeping the fund healthy, as it’s built from employer contributions of 8.33 percent on wages (capped at Rs 15,000 basic pay) with no direct input from workers. 

How EPS Works 
EPS-95, run by the Employees’ Provident Fund Organisation (EPFO), gives a lifelong monthly pension starting at age 58 to formal sector employees. 

It also covers early retirement, family pensions, and widow benefits, all drawn from the shared fund pool. The scheme faces ongoing demands from unions and retirees for hikes to Rs 5,000–7,500 due to rising costs, but officials stress sustainability first amid actuarial shortfalls shown in past audits.