EPFO Hikes Pension to ₹7,500 – 7X Increase! Key Details for Pensioners
By : Krishna Mishra
The Employees' Provident Fund Organisation (EPFO) has announced a major decision to increase the minimum pension amount. The pension will now be raised to Rs 7,500, offering financial support to nearly 78 lakh pensioners across the country.
This increase is aimed at helping pensioners cope with the rising cost of living. The central government has decided to implement this change from April 2025, alongside a revision in the Dearness Allowance (DA).
Earlier, the minimum pension amount stood at Rs 1,000, a figure that had drawn criticism for being insufficient under current economic conditions. The new amount of Rs 7,500 represents a sevenfold rise, allowing pensioners to better manage basic needs such as healthcare, food, and housing.
Under the revised scheme, eligible pensioners will also receive DA, which is currently set at 7% based on the All India Consumer Price Index (AICPI). This translates to an additional Rs 525, bringing the total pension to Rs 8,025 per month.
Those who qualify include pensioners under the Employees’ Pension Scheme (EPS) 1995 who have completed at least ten years of service. Importantly, there is no need for any application to receive the revised pension. The updated amount will be directly deposited into Aadhaar-linked bank accounts of the beneficiaries.
To ensure smooth disbursement of funds, pensioners are advised to update their Know Your Customer (KYC) details. This will help avoid any technical issues in the credit process.
The decision is expected to offer much-needed relief to pensioners who have been struggling with rising inflation and stagnant income. It reflects the government’s intention to support retirees by enhancing their financial stability and addressing long-standing concerns about the low pension amount.
The updated pension system ensures automatic crediting of the revised amount and simplifies the overall process for pensioners. With the added support of DA and no additional paperwork required, this move is likely to bring substantial economic relief to millions of retirees in India.