The government is reviewing a proposal to increase the minimum pension under EPS-95, currently set at ₹1,000 per month. The move comes amid growing pressure from pensioners and labour unions, alongside broader reforms within the EPFO aimed at improving efficiency and access to funds.
Minimum pension revision under consideration
The government is actively examining a proposal to revise the minimum pension under the Employees' Pension Scheme (EPS-95). The current monthly pension of ₹1,000 has long been criticised as insufficient, especially in the context of rising living costs.
Pensioners' associations and labour unions have demanded an increase to ₹7,500, arguing that the existing amount does not meet basic needs. The proposal has also received support from a parliamentary committee, which has recommended an upward revision to strengthen social security.
EPFO signals broader reform momentum
The pension debate comes at a time when the Employees' Provident Fund Organisation is undergoing significant operational and policy changes. According to officials, discussions are ongoing and a final decision on the pension hike could be announced soon.
The proposed revision is seen as part of a wider effort to modernise India's retirement and social security framework.
EPF interest and liquidity measures
Subscribers are expected to receive an interest credit of 8.25% on EPF deposits for FY26, subject to final approval by the Finance Ministry. Once cleared, the interest amount will be credited directly to members' accounts.
In a major step to improve access, the EPFO is also preparing to introduce ATM-based withdrawals, enabling subscribers to access their provident fund savings more easily and reducing reliance on traditional claim processes.
Record claim settlements and faster processing
Operational efficiency at the Employees' Provident Fund Organisation has improved significantly. In FY 2025-26, the EPFO settled a record 8.31 crore claims, compared to 6.01 crore in the previous year.
Out of these, 5.51 crore claims were related to advance or partial withdrawals, indicating increased flexibility for members.
Automation has played a key role, with 71.11% of advance claims processed within three days through auto-settlement, up from 59.19% in the previous year. This has reduced manual intervention and improved turnaround time.
Digital adoption streamlines services
The EPFO has also seen strong digital adoption:
- 6.68 crore claims filed without uploading cheque images
- 1.59 crore members linked bank accounts without employer approval
- 70.55 lakh transfer claims auto-processed
- 29.34 lakh members updated profiles independently
These measures have reduced paperwork and made services more user-friendly.
Strong start to FY27
The momentum has continued into FY27, with 61.03 lakh claims settled in April 2026 alone. Nearly 98.70% of these claims were processed within 20 days, reflecting sustained efficiency improvements.
E-PRAAPTI portal to track old accounts
Looking ahead, the EPFO is set to launch E-PRAAPTI (EPF Aadhaar-Based Access Portal for Tracking Inoperative Accounts). This digital platform will help members identify, track, and activate old or inactive provident fund accounts.
The system will initially operate using member IDs and later expand to include users without access to legacy details. Aadhaar-based authentication will enable seamless linking with the Universal Account Number (UAN).
The proposed EPS-95 pension hike carries significant implications. While it could improve financial security for retirees, it may also increase the government's fiscal burden.
The final decision will therefore be a critical policy call, balancing the need for stronger social welfare with budgetary considerations.