Can you imagine a scenario where you retire after a long time of working hard non-stop, and you get to see less than a week’s worth of groceries in the form of a monthly pension check in India’s busy cities?
The Revolution Of The Hike That Radiates
Think of the gentle thrill that union meetings and family living rooms would experience. Silent support from the government was a result of hard lobbying by the unions and a little push from the Supreme Court ruling of the previous year regarding the pensions issue.
The Magic Trick
EPFO’s calculation is not very complex but it is changing. The source of pensions is a cut of 8.33% of the employer’s salary (maximum ₹15,000) directed to EPS during your tenure and multiplied by one factor (bound to the retirement age) to get the final monthly amount.
| Pension Type | Old Minimum (₹) | New Minimum (₹) | Key Eligibility |
|---|---|---|---|
| Superannuation | 1,000 | 7,500 | 10+ years service, age 58+ |
| Widow/Dependent | 1,000 | 7,500 | Spouse/child of deceased member |
| Disability | 1,000 | 7,500 | Permanent disability, any age |
This table graphically illustrates the universal elevation, no more tiered humiliation. The rollout mode began last November with the priority given to the long-pending claims. By April 2025, the introduction of full automation through the Centralized Pension Payment System (CPPS) will guarantee the credits are done on the last day of the month, thus reducing the delays significantly.
Arrears Avalanche
Did you forget about the backlog? 2025 didn’t. The EPFO started to release arrears through different phases in compliance with the 2022 court ruling and had to recalculate higher pensions based on the actual wages.
