Union Budget 2026: Big relief likely for EPFO pensioners as minimum pension hike expected

With the Union Budget set to be presented on February 1, indications suggest the Centre may announce an increase in the long-stagnant minimum pension for EPFO subscribers amid pressure from unions and a pending Supreme Court case.

The entire country is closely watching the Union Budget, which the Central Government will present in Parliament on February 1. As discussions and expectations intensify, several predictions are being made about what the budget may offer different sections of society.

While tax relief for the middle and salaried classes remains a major topic, attention has now shifted to pensioners, especially those covered under the Employees’ Provident Fund Organisation (EPFO). According to reports, the Centre may announce good news for EPFO subscribers by increasing the minimum monthly pension after retirement.

At present, under the EPF pension scheme, retired employees receive a minimum pension of ₹1,000 per month. This amount has remained unchanged for the last 11 years, despite rising inflation and changing economic conditions. No revision has been made during this period, leading to growing dissatisfaction among pensioners.

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Employee unions have repeatedly stated that ₹1,000 is insufficient to meet even basic living expenses in the current economic environment. For several years, trade unions have been demanding an increase in the minimum pension limit.

On January 6, members of the Bharatiya Mazdoor Sangh met the Union Minister for Labour and Employment and formally submitted a proposal seeking a hike in the minimum EPFO pension. In addition, other employee organisations have demanded that the minimum pension be raised to ₹7,000 to ₹10,000 per month.

The issue has also reached the Supreme Court, where a case is pending over the failure to revise the minimum pension for over a decade. Recently, the apex court directed the Central Government to clarify its stand on the pension hike.

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In this backdrop, there is strong speculation that the government may announce its decision on EPFO pension enhancement in the upcoming Union Budget, addressing both legal scrutiny and long-standing demands from employee unions.