Pension crisis: 4.9 mn retirees under EPS-95 get meagre pensions below Rs 1,500, govt data shows

Nearly half of all retirees under the Employees’ Pension Scheme, 1995 (EPS-95), receive less than Rs 1,500 per month, according to data presented before Parliament and reported by PTI. The figures highlight growing concerns about the adequacy of India’s social security framework in supporting retired workers amid rising living costs.

Pensioner Statistics at a Glance

The Labour Ministry reported that as of March 31, 2025, 8.15 million pensioners were enrolled under EPS-95, which is managed by the Employees’ Provident Fund Organisation (EPFO).

4.915 million pensioners, over 50%, earn less than Rs 1,500 monthly.

7.87 million pensioners (96%) receive below Rs 4,000 per month.

8.09 million pensioners (99%) have monthly pensions under Rs 6,000.

Only 53,541 pensioners (0.65%) draw more than Rs 6,000.

The minimum pension under EPS-95 remains Rs 1,000 per month, a sum widely seen as insufficient to meet basic needs.

Pressure to increase pensions

Trade unions have repeatedly argued that such meagre pensions fail to provide financial security for retirees, particularly as prices for essential goods and services continue to rise. They have demanded that the minimum monthly pension be raised to Rs 9,000, listing it as a key point in a 17-demand charter submitted to the Labour Ministry. Advocates emphasize that improving pension adequacy is critical not only for retired workers’ welfare but also for social stability.

Pension Disbursal and EPFO Finances

Minister of State for Labour and Employment, Shobha Karandlaje, informed the Rajya Sabha that total pension disbursals under EPS-95 rose to Rs 23,028 crore in 2023-24, up from Rs 22,113 crore in 2022-23.

At the same time, the EPFO’s overall income has increased:

Interest income grew to Rs 58,669 crore from Rs 52,171 crore the previous year.

Other income, including penal damages and interest, rose to Rs 864 crore from Rs 564 crore.

Funds in inoperative accounts were reported at Rs 10,898 crore as of March 2025 (provisional).

These figures point to a widening gap between the EPFO’s financial growth and the pensions received by the majority of its beneficiaries, reigniting debates on whether the system effectively safeguards retired workers’ livelihoods.