KKN Gurugram Desk | Several significant changes are happening in pension schemes that will impact employees and pensioners across India. The Employees’ Pension Scheme (EPS 95), EPFO rule modifications, and the ongoing debate on the Old Pension Scheme (OPS) have caught the attention of millions.
These changes aim to improve financial security for retirees and bring new benefits for government and private-sector employees. In this article, we will discuss the proposed EPS 95 changes, EPFO’s latest rules, and the introduction of the Unified Pension Scheme (UPS).
Let’s dive into these key updates and understand how they might affect you.
What is EPS 95 Pension Scheme?
The Employees’ Pension Scheme (EPS 95) is a social security initiative by the Employees’ Provident Fund Organization (EPFO) for organized sector employees. Here’s a quick breakdown of its features:
| Feature | Details |
|---|---|
| Launch Date | November 16, 1995 |
| Eligibility | Employees in the organized sector |
| Minimum Pension | ₹1,000 per month |
| Contribution | 8.33% by employer, 1.16% by government |
| Service Requirement | Minimum 10 years |
| Pension Calculation | Based on the last 60 months’ average salary |
| Family Pension | Available for eligible family members |
| Withdrawal Option | After the age of 58 |
Many pensioners have long demanded an increase in minimum pension, and several proposals have been made to improve benefits under EPS 95.
Proposed Changes in EPS 95 Pension Scheme
EPS 95 pensioners have been advocating for several reforms, and some key proposals include:
1️⃣ Increase in Minimum Pension – The EPS-95 National Action Committee has requested a hike in minimum pension to ₹7,500 per month.
2️⃣ Dearness Allowance (DA) for Pensioners – A proposal to introduce regular DA hikes to adjust for inflation.
3️⃣ Medical Benefits – Demand for free healthcare facilities for pensioners and their spouses.
4️⃣ Higher Pension Option – Employees want the option to contribute to EPS based on actual salary, rather than being capped at ₹15,000.
If implemented, these changes will significantly enhance the financial security of pensioners.
EPFO’s Latest Rules & Updates for 2025
EPFO has announced several new reforms and features for employees and pensioners in 2025. Here are some of the major updates:
1. No More Contribution Limit of ₹15,000
- Employees can now contribute based on their actual salary rather than the previous limit of ₹15,000.
- This will result in higher pension benefits for those opting for it.
2. PF Withdrawal Through ATMs
- EPFO members will soon be able to withdraw PF balance via ATMs.
- This will provide easier access to funds in case of emergencies.
3. Faster Claim Settlement with IT System Upgrade
- EPFO is upgrading its IT infrastructure to speed up pension and PF claim settlements.
- The process will become faster and more transparent.
4. Equity Investment Option for EPFO Members
- EPFO is considering allowing direct investment in equities for its members.
- This could provide higher returns in the long run.
5. Withdraw Pension from Any Bank
- Pensioners will now be able to withdraw their monthly pension from any bank, making it more convenient.
These updates aim to modernize the pension system and make it more efficient and user-friendly.
Demand for the Return of Old Pension Scheme (OPS)
The debate on bringing back the Old Pension Scheme (OPS) is heating up across India. Under OPS, retired employees received 50% of their last drawn salary as pension.
Key Developments in OPS Movement
1️⃣ Several state governments have announced the reintroduction of OPS.
2️⃣ The central government is under pressure to reconsider OPS.
3️⃣ Employee unions argue that OPS provides better financial security than the National Pension System (NPS) or UPS.
4️⃣ Supporters of OPS claim that it ensures a stable pension without market-linked risks.
With increasing demand from government employees, OPS could become a key political and financial issue in the coming years.
Unified Pension Scheme (UPS) – New Pension System for Government Employees
To balance the concerns regarding OPS and NPS, the central government has introduced the Unified Pension Scheme (UPS).
Key Features of UPS
✅ Available as an alternative under NPS.
✅ Guaranteed 50% pension based on the last 12 months’ average salary after 25 years of service.
✅ Minimum ₹10,000 per month pension.
✅ Government contribution increased from 14% to 18.5%.
✅ Includes family pension & dearness allowance (DA).
UPS will come into effect from April 1, 2025, benefiting around 23 lakh central government employees.
Top 15 Pension-Related Updates in 2025
Here are the latest developments in pension schemes and reforms:
1️⃣ EPS-95 Pension Hike Demand – Pensioners met with the Finance Minister to request a minimum pension of ₹7,500 per month.
2️⃣ Higher Pension Notices – EPFO issued notices to 1.65 lakh members to deposit additional amounts for higher pensions.
3️⃣ Unified Pension Scheme (UPS) Notification Issued – Effective from April 1, 2025.
4️⃣ OPS Protests Continue – Government employees in Assam protested for OPS restoration.
5️⃣ EPFO IT Upgrade – The system will be fully upgraded by June 2025 to ensure faster claims.
6️⃣ ATM PF Withdrawals – Available from FY 2025-26.
7️⃣ UAN Activation Deadline Extended – Deadline extended to February 15, 2025, for Employee Linked Insurance (ELI) scheme.
8️⃣ Cabinet Discussion on OPS – Expected in the next cabinet meeting.
9️⃣ EPS-95 CBT Meeting on February 28, 2025 – Decision on minimum pension hike expected.
🔟 EPFO Simplifies Joint Declaration Process – To ease pension claims.
1️⃣1️⃣ UPS DA Provisions – UPS pensioners will receive Dearness Relief.
1️⃣2️⃣ Pressure on the Center for OPS – Several state governments continue lobbying for OPS.
1️⃣3️⃣ Higher Pension Benefits Begin – 22,000 members started receiving increased pensions.
1️⃣4️⃣ PFRDA to Release UPS Guidelines – Expected soon.
1️⃣5️⃣ New Pension Calculation Tool – EPFO introduced a tool to calculate expected pension benefits.
The pension reforms of 2025 are set to impact millions of employees and retirees. The changes in EPS 95, EPFO rules, and the introduction of UPS aim to improve financial security for pensioners. However, the demand for OPS restoration continues to gain momentum.
It is essential for employees to stay informed about these policy changes and plan their retirement accordingly. Regular updates from EPFO and government sources will help maximize pension benefits.
📌 Will EPS-95 pensioners receive higher pensions? Will OPS make a comeback? Stay tuned for the latest pension updates