Pension scheme had multiple changes recently in 2025 under the Employees’ Provident Fund Organization (EPFO) by the Government of India. These changes were primarily meant to make the pensioners more secure financially and also improve the lifestyle. This newly brought up scheme introduces a higher minimum pension entitlement that has been increased to ∈7,000. This increase will prove quite beneficial for lakhs of retired employees. Apart from such a thing, it has also included a dearness allowance (DA) to make the income of pensioners secure.
Increase in Minimum Pension
Before increasing minimum pension to ₹ 7,000 in 2025, the EPFO has maintained it at ₹ 1,000 for years. This increase particularly will benefit low-income group pensioners to take care of their needs against inflation.
Including Dearness Allowance (DA)
For the first time, Dearness Allowance (DA) has been included under the EPFO pension scheme. This allowance will be calculated based on the percentage of increase in the inflation rate and would help maintain the purchasing power of pensioners. It is a major step in reforming into a benefit like the pension schemes for the government employees.
Introduction of Unified Pension Scheme (UPS)
EPFO has approved the Unified Pension Scheme (UPS), which came into effect on February 25, 2025. The scheme will apply to three types of employees:
- Working on April 1, 2025, and coming under NPS
- Becoming new employees joining after April 1, 2025
- Those retired before March 31, 2025, and coming within the ambit of NPS
Application Process and Deadlines
The defined employees have to apply to the scheme within three months from April 1, 2025. New recruits must apply within 30 days. Once the option is chosen, it cannot be changed.
Conclusion
The changes made in the EPFO Pension Scheme 2025 give a respite to pensioners. Millions of retired employees will benefit from the increase in the minimum pension, inclusion of dearness allowance, and Unified Pension Scheme. It is one huge step in keeping financial sustainability while promoting lifestyle improvement among pensioners.
Also Read: April 2025 Salary Hike: Big Relief For Government And Private Employees