Around Half of EPS-95 Pensioners Receive Less Than Rs 1,500 Monthly, Only 0.65% Over Rs 6,000

According to data from March 2025, nearly half (49.15 million) of pensioners under the Employees' Pension Scheme 1995 receive less than Rs 1,500 monthly, while only 0.65% (53,541) receive over Rs 6,000. The total number of pensioners is 81.48 million, and the minimum monthly pension entitlement is Rs 1,000. The EPFO disbursed Rs 23,027.93 crore in 2023-24 and has Rs 10,898.07 crore in inoperative accounts.

According to data from March 2025, the Employees' Provident Fund Organisation (EPFO) revealed significant disparities in monthly pension disbursements under the Employees' Pension Scheme 1995 (EPS-95). The data, shared by the Ministry of Labour and Employment, highlights a stark contrast between the pension amounts received by different segments of pensioners.

Out of the total 81.48 million pensioners under EPS-95, nearly half—49.15 million—receive less than Rs 1,500 monthly. This figure underscores the financial vulnerability of a substantial portion of the pensioner population. In contrast, only 0.65% (53,541) of the pensioners receive over Rs 6,000 monthly, indicating a significant gap in pension entitlements [2].

The total amount disbursed under the pension scheme in FY 2023-24 was Rs 23,027.93 crore, marking an increase from the previous year's Rs 22,112.83 crore. However, the total amount held in inoperative accounts as of March 31, 2025, stands at Rs 10,898.07 crore, highlighting the need for better management and utilization of these funds [1].

The minimum monthly pension entitlement under EPS-95 is Rs 1,000, which is significantly lower than the Rs 9,000 minimum pension demanded by trade unions. This discrepancy underscores the need for a comprehensive review of the pension scheme to ensure fair and adequate disbursements to all pensioners.

The data also reveals that the interest income generated by EPFO has been increasing, reaching Rs 58,668.73 crore in FY 2023-24, up from Rs 52,171 crore in FY 2022-23. However, the other income (penal damages, 7Q interest, etc.) has also increased, indicating a need for further scrutiny of the income sources and their impact on pension disbursements [1].

In conclusion, the data from EPS-95 highlights the urgent need for a reassessment of the pension scheme to address the disparities in monthly pension disbursements. This reassessment should focus on increasing the minimum pension entitlement and ensuring that a larger proportion of pensioners receive adequate financial support.

References:
[1] https://upstox.com/news/personal-finance/latest-updates/eps-95-data-how-many-pensioners-get-less-than-1500-4000-and-6000-per-month-from-epfo/article-180066/
[2] https://money.rediff.com/news/market/eps-95-half-get-under-rs-1500-pension/32368320250821