Good News For Pensioners Soon! Will Govt Hike Minimum Pension To Rs 9,000 From Rs 1,000 Under EPS In Budget?

The Finance Ministry is holding a series of pre-budget meetings to take into account recommendations and demands from experts of various industries in India. As per reports, trade unions have raised demands related to the Employees' Pension Scheme (EPS) 1995 in a recent pre-budget meeting. They demanded that the minimum pension should be hiked to Rs 9,000 from the current Rs 1,000. It needs to be noted that the hike related to the EPS pension has been in the limelight for quite some time now.

EPS Minimum Pension Hike In Budget?

As per a PTI report, workers' representatives have urged the government to provide tax incentives on social security contributions, regularization of scheme workers, restoration of the old pension scheme, and raising entitlement for EPFO pensioners to Rs 9,000 per month.

They raised these demands reportedly in a recent pre-budget meeting that was chaired by top brass of the Finance Ministry with trade union representatives.

The union suggested that the minimum pension of Rs 9,000 per month should be linked with DA (dearness allowance). Apart from this, they suggested that the new pension scheme should be eliminated, as the truncated Unified Pension Scheme cannot replace the Old Pension Scheme. Accordingly, they demanded the benefits of old pension scheme be restored.

Also, they recommended that the ceiling limit for income tax rebates on salaried individuals on their salary be raised. Additionally, they demanded the ceiling limit on EPFO and ESI contributions be increased as well.

Many are demanding the EPS pension be increased to Rs 9,000 from the current Rs 1,000. If this becomes reality in Budget 2026, then pensioners would see a breathtaking 800% jump in minimum pension.

Union Budget 2026 Date:

Every year, the Finance Minister Nirmala Sitharaman presents Union Budget for respective financial year on February 1. In 2026, the February 1st falls on Sunday. Hence, it will be keenly watched if the government will shift the date to business working days.

Employees Pension Scheme:

Currently, 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.

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 the Employees' Provident Fund Organisation (EPFO).

In July 2025, the Labour Ministry said that it has received representations from various stakeholders, including trade unions and public representatives, to increase the minimum pension under the Employees' Pension Scheme (EPS), 1995, from the existing Rs. 1000/- per month.