EPFO Pension Hike 2025 Update: The Employees` Pension Scheme (EPS-95), running under the Employees’ Provident Fund Organisation (EPFO), has mainly been a social security measure meant for India’s organized sector workers. It renders a certain measure of financial security post-retirement so that employees may enjoy a worthy life during their golden years.
In an effort to upgrade the living standards of the pensioners so that they can keep up with inflation, latest pension hike by EPFO in 2025 has uplifted the minimum pension from ₹1,000 to ₹3,000 per month for over 6 lakh pensioners.
What is the EPFO Pension Scheme (EPS-95)?
Introduced on 16th November 1995, the Employees’ Pension Scheme (EPS-95) promises monthly pension to employees post-retirement. It is part of the EPF scheme and has contributions from both the employers and the employees.
Under EPS-95:
- Some part of the employee’s basic salary + DA (Dearness Allowance) goes into the pension fund.
- After retirement (or under certain other conditions), the employee or his family are entitled to receive a long-term pension.
EPFO Pension Scheme – Key Highlights
| Feature | Details |
|---|---|
| Scheme Name | Employees’ Pension Scheme (EPS-95) |
| Launched | 1995 |
| Governing Body | Employees’ Provident Fund Organisation (EPFO) |
| Eligibility | EPF member, 10 years of service, retirement age 58 years |
| Minimum Pension (2025) | ₹3,000/month (revised from ₹1,000) |
| Employer Contribution | 8.33% of basic salary + DA |
| Maximum Salary Limit | ₹15,000 (for pension calculation) |
| Application Mode | Online & Offline |
| Beneficiaries | Employees, spouse, children (in case of death/disability) |
Key Benefits of EPFO Pension Scheme
- Monthly Pension – A fixed income post-retirement.
- Family Protection – Spouse and children receive pension in case of the employee’s death.
- Disability Pension – Financial support if the employee becomes permanently disabled.
- Easy Application – Apply online or offline via EPFO portal.
- Guaranteed Minimum Pension – Now ₹3,000/month (up from ₹1,000).
- Higher Pension Option – Eligible employees can opt for pension based on actual salary (not just ₹15,000 cap).
Who is Eligible for EPFO Pension?
To avail EPS-95 benefits, employees must meet these eligibility criteria:
- Must be an EPF member.
- Completed at least 10 years of service.
- Retirement age is 58 years (early pension available from 50 years at reduced rates).
- Family pension is provided in case of the employee’s death.
Types of Pensions Under EPS-95
- Superannuation Pension – After 58 years + 10 years of service.
- Reduced Pension – Available from 50 years (with lower payout).
- Disablement Pension – For permanently disabled employees.
- Widow/Widower Pension – For the spouse after the employee’s death.
- Child Pension – For children (up to 25 years).
- Orphan Pension – If both parents pass away.
EPFO Pension Contribution Structure
- 12% of basic salary + DA goes to EPF.
- Out of this, 8.33% (employer’s share) is deposited into EPS.
- Employee contribution does not go into EPS – only the employer’s share.
- Maximum pensionable salary is ₹15,000 (unless opting for Higher Pension).
Higher Pension Option – How Does It Work?
The EPFO Higher Pension Option allows employees to receive pension based on their actual salary (not limited to ₹15,000).
Who Can Apply?
- Employees who were EPF/EPS members before 31st August 2014.
- Must submit a joint request (employee + employer).
How to Apply?
- Visit the EPFO Member Portal.
- Navigate to “Pension on Higher Salary”.
- Submit Form 11 (Joint Declaration).
- Upload required documents.
- Track status online.
EPFO Pension Application Process (Online & Offline)
Online Application Steps:
- Go to EPFO Member Portal.
- Log in using UAN & password.
- Select “Pension” → Form 10D.
- Upload documents (Aadhaar, PAN, bank details).
- Submit & note acknowledgment number.
Offline Application Steps:
- Visit the nearest EPFO office.
- Collect & fill Form 10D.
- Attach required documents.
- Submit & collect receipt.
Documents Required for EPFO Pension
- Aadhaar Card
- PAN Card
- Bank Passbook/Cancelled Cheque
- Passport-size Photo
- Service Certificate
- Nominee Details
How to Check EPFO Pension Status?
- Log in to EPFO Member Portal.
- Click “Pension Status”.
- Enter acknowledgment number.
- View application status.
Latest Updates on EPFO Pension (2025)
- Minimum pension increased to ₹3,000/month.
- Deadline extended for Higher Pension Option submissions.
- Supreme Court rulings have modified certain pension rules.
- EPFO now allows online document submission for pension claims.
EPFO Pension Scheme – Pros & Cons
| Pros | Cons |
|---|---|
| Guaranteed post-retirement income | Pension calculation capped at ₹15,000 (unless Higher Pension opted) |
| Family security (spouse & children covered) | 10-year service mandatory |
| Higher Pension Option available | Process can be complex |
| Online & offline application | Frequent rule changes |
| Disability & survivor benefits | Not all employees qualify for higher pension |
Frequently Asked Questions (FAQs)
Q1. Is EPS-95 open to all employees?
No, only EPF members in the organized sector are eligible.
Q2. Can I get a pension with less than 10 years of service?
No, but you can withdraw the pension amount.
Q3. What is the Higher Pension Option?
It allows pension calculation on actual salary (not just ₹15,000) for pre-2014 EPF members.
Q4. When does the pension start?
At 58 years, or early pension (from 50 years at reduced rates).
Q5. What benefits do family members get?
Spouse receives 50% pension, and children get support until 25 years.