Big increase in EPS 95 pension! Pensioners will get good news from 2025
The Employees Provident Fund Organization (EPFO) has recently taken a big decision which will prove to be a relief for lakhs of pensioners. From January 1, 2025, many important changes are being made in the EPS 95 pension scheme which will help pensioners to get their pension easily. Under these changes, pensioners will now be able to withdraw their pension from any branch of any bank in the country. This will allow them to get pension from the bank nearest to their place of residence.
Also, the government is considering increasing the minimum pension amount under EPS 95. Currently this amount is Rs 1,000 per month, which is being demanded to be increased to Rs 5,000 per month. This change is expected to benefit more than 78 lakh pensioners. Let us know in detail about these changes in the EPS 95 pension scheme in this article.
What is EPS 95 Pension Scheme?
EPS 95 i.e. Employees’ Pension Scheme 1995 is a social security scheme operated by EPFO. Under this scheme, contributions are made to the pension fund by employees and employers. Employees become eligible for pension after completing 10 years of service and attaining the age of 58 years. Apart from this, there is also a provision for early pension, disability pension and family pension.
Table of Contents
Key Features of EPS 95 Pension Scheme
| Speciality | Description |
| Name of the scheme | Employees’ Pension Scheme 1995 |
| Effective Date | 16 November 1995 |
| Operation | Employees’ Provident Fund Organisation (EPFO) |
| Beneficiary | Employees registered under EPFO |
| Minimum service period | 10 years |
| Pension eligibility age | 58 years |
| Current minimum pension | Rs 1,000 per month |
| Proposed minimum pension | Rs 5,000 per month |
What is Centralized Pension Payment System (CPPS)?
Central Pension Payment System (CPPS) is a new system which is being implemented by EPFO from 1st January 2025. Under this system, EPS 95 pensioners will be able to receive their pension from any branch of any bank in the country. It is a national level centralized system which will make pension payments easy and convenient.
Key Benefits of CPPS
- Freedom for pensioners to withdraw pension from any bank branch
- No need to transfer Pension Payment Order (PPO)
- Instant pension credit, without any additional verification
- Convenient for pensioners returning home after retirement
- About 78 lakh EPFO EPS pensioners benefited
Proposal to increase minimum pension amount
Currently, the minimum pension under EPS 95 is Rs 1,000 per month. However, there is a demand by trade unions and employee organizations to increase it. According to the proposal, the minimum pension should be increased to Rs 5,000 per month. Some key points in this regard:
- Bharatiya Mazdoor Sangh has demanded minimum pension of Rs 5,000
- The Labor Ministry is considering this proposal
- Suggestion to link pension amount to Variable Dearness Allowance (VDA)
- About 65 lakh pensioners are expected to benefit from this
EPS 95 Higher Pension Option
Employees have been given another chance to opt for higher pension under EPS 95. Some important dates have been fixed for this:
- Last Date for Application: 31 January 2025
- Last date for uploading salary details by employers: 31 January 2025
- Last date for submitting clarifications sought by EPFO: 15 January 2025
Statistics of Higher Pension Option
- Total applications received: 17,48,775
- Pension payment orders issued: 16,282
- Rejected applications: 2.6 lakh
Demand for 8th Pay Commission
There is also a demand for the formation of the 8th Pay Commission for central government employees and pensioners. Some key points in this regard:
- Trade unions have demanded immediate formation of 8th Pay Commission from the Finance Minister
- More than 10 years have passed since the formation of the 7th Pay Commission
- Around 50 lakh central government employees and 67 lakh pensioners will benefit from this
- Emphasis on the need for revision of pay structure
Other proposed reforms in EPS 95 pension scheme
Some other suggestions are also given to further improve the pension scheme:
- Proposal to exempt pension income from income tax
- Demand to increase income tax exemption limit to Rs 10 lakh
- Social Security Scheme for Unorganized Sector Workers
- Special social security scheme for gig workers
- Demand to restore Old Pension Scheme (OPS)
Future of EPS 95 pension scheme
The proposed changes in the EPS 95 pension scheme can have a positive impact on the lives of millions of pensioners. The Central Pension Payment System (CPPS) will make the process of receiving pension easier. Also, the increase in the minimum pension amount will improve the financial condition of pensioners.
However, there are some challenges in implementing these changes:
- Ensuring the financial stability of pension funds
- Strengthening technical infrastructure
- Coordination between banks and EPFO
- Making pensioners aware about the new system
conclusion
The proposed changes in the EPS 95 pension scheme are definitely a relief for pensioners. The Central Pension Payment System (CPPS) and the increase in the minimum pension amount will benefit millions of pensioners. However, the government and EPFO will have to face many challenges to implement these changes. It will be interesting to see in the coming times how these proposed reforms are implemented and what impact they have on the lives of pensioners.
Disclaimer : This article has been prepared based on publicly available information. The final decision regarding the proposed changes in the EPS 95 pension scheme will be taken by the government and the EPFO. Readers are advised to visit the EPFO website or contact the nearest EPFO office for the latest official information.
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