Many old workers in India are finding it hard to live on small pensions from the Employees’ Pension Scheme (EPS-95). In 2025, government data shows that millions of these pensioners get very little money each month, making daily life a big struggle. With prices of food, medicine, and other things going up, ₹1500 is not enough even for basic needs. Trade unions are asking for changes, and there is talk of a pension hike, but right now, the situation is bad for many families. This news is important for everyone who works or has retired under EPFO.
Shocking Numbers on Low Pensions
Out of 8.15 million EPS-95 pensioners as of March 2025, more than half, that is 4.9 million people, get less than ₹1500 per month. This means they can hardly buy groceries or pay bills. Almost 96 percent, or 7.87 million, receive below ₹4000, and 99 percent get under ₹6000. Only a tiny group, about 0.65 percent or 53,541 pensioners, enjoy more than ₹6000. The minimum pension is still ₹1000, which experts say is too low for city life where costs are high. These facts came out in Parliament, showing how the system is not helping retirees enough.
Here’s a simple table showing the pension breakdown for EPS-95 as of March 2025.
Pension Amount Number of Pensioners Percentage
Less than ₹1500 4.9 million Over 50%
Less than ₹4000 7.87 million 96%
Less than ₹6000 8.09 million 99%
More than ₹6000 53,541 0.65%
Why This is a Big Problem for Families
For these pensioners, mostly from jobs like factories or small offices, ₹1500 does not cover even one week’s expenses in big cities. Think about rent, electricity, or doctor visits – it all adds up fast. Trade unions say this low amount does not give financial safety, especially when everything costs more now. They have given a list of 17 demands to the Labour Ministry, including raising the minimum to ₹9000 per month. Without better pensions, many old people depend on family or face hard times, which is not fair after years of work.
Government Spending and Calls for Change
In the last financial year, EPFO gave out ₹23,028 crore in pensions, up from ₹22,113 crore before. The total fund is huge, over ₹9.9 lakh crore, but most money goes to few people while millions get tiny shares. Unions argue that with rising prices, the government must step in for social good. There is pressure to fix this, as low pensions affect not just individuals but whole communities.
Hope for a Pension Hike Soon
Good news is coming for some. From May 2025, the minimum pension might jump to ₹7500, helping over 6 million people. This 650 percent increase is to fight high living costs, and the government plus EPFO will pay for it. Final okay is needed from the board, but it could bring relief. Still, for now, the struggle is real, and pensioners are waiting for quick action. If you are in EPS-95, check updates on EPFO site or talk to unions for support