A Supreme Court decision in August 2025 achieved a breakthrough in paying dignity to millions of retired workers, as the court increased the minimum monthly payment at a higher level to the pensioners under the EPS-95 pension scheme. This area of knowledge will assist all current and upcoming pensioners gauge the benefits and how to benefit with the new levels better.
What is EPS-95?
Employees Pension Scheme (EPS-95), which was set up under the Employees Provident Fund Organisation (EPFO), was established in 1995 with the aims to provide post-retirement income to workers in any establishment employing 20 or more employees. The minimum ten years of service and aged 58 or above are the qualifications a contributor should attain before getting a pension. EPS-95 is a mixture of employer and Government contributions which are to pay out money monthly based on a formula that takes into consideration past salary history, and years of service.
Supreme Court–Approved Hike
In the pre-2025 scheme, the government used to give a minimum retirement pension of 1,000 per month under budgetary support under the EPS 95 scheme. The Supreme Court, in April 2025, allowed increasing the floor pension to 7,500 rupees per month, with Dearness Allowance to match the rise in costs of living 2.ilis corners: After years of agitations, the Supreme Court in April 2025 permitted the increase in the floor pension to 7,500 rupees every month, including Dearness Allowance, as a move to match the cost of living This became effective in August 2025 and impacts over 78 lakh pensioners in this country.
Revised Pension Rates
The increased minimum pension means there are no EPS-95 pensioners who get paid less than 7500 rupees a month. Existing pensioners whose notional pension is above this floor will receive their pensions as at present under the de facto formula. There will be Dearness Allowance adjustments that would be added to the revised base to guard against future inflationary elements.
Who Benefits?
All current EPS-95 pensioners who already get less than 7, 500 as pension are automatically covered by the new minimum. The future retirees who will be joining EPS-95 after its founding will also enjoy this floor in case they satisfy the service and age requirements. The higher death‐benefit claim minimum applies to Estates of deceased contributors.
How to Claim the Revised Pension
Pensioners do not have to apply afresh PFO will re-compute benefits and credit arrears in July and August 2025 and directly credit bank accounts on record. Whose payments are delayed are advised to visit their regional EPFO office with their pension payment order and bank pass book to have it resolved.
EPS-95 Pension Update at a Glance
| Metric | Previous Rate | Revised Rate | Effective Date |
|---|---|---|---|
| Minimum Monthly Pension | ₹1,000 | ₹7,500 | August 1, 2025 |
| Number of Beneficiaries | ~78 lakh | ~78 lakh | |
| Dearness Allowance | Variable | Variable | As per EPFO cycles |
The 2025 EPS-95 pension update marks a historic step in India’s social security landscape. By lifting the minimum pension, the judiciary and government have acknowledged the financial challenges faced by low-income retirees, ensuring a more secure retirement for millions.
Also read: EPFO New Rules 2025: What You Must Do to Accelerate Your PF Benefits