Trade Unions Say New Pension Rules Ignore Demand for Minimum Pension Hike

The Union Labour Ministry published new rules for the Employees' Provident Fund (EPF) Scheme, Employees' Pension Scheme (EPS), and Employees' Deposit Linked Insurance (EDLI) Scheme on June 29 and 30, 2026. These replace the earlier rules from 1952 and are necessary following the implementation of the Code on Social Security in November 2025. The Central Board of Trustees (CBT) had approved the draft rules in its 239th meeting on March 2, 2026.

The Ministry informed the CBT that the new rules provide a legally sound framework under the Code and incorporate previously approved reforms. The government stated that the changes align the schemes with the Code, remove ambiguity during the transition, and ensure continuity in the administration of social security benefits. However, trade unions have expressed disappointment, alleging that the notification does not address key subscriber demands, such as an increase in the minimum pension and clarity on higher pension for applicants.

Under the revised EPF rules, the scheme now applies to all establishments covered under Chapter III of the Code, including those under central or state government control. The rules also redefine exempted establishments and the term 'international worker'.

In the EPS rules, a significant amendment concerns the wage ceiling for pension. Previously, if a member's pay exceeded ₹15,000 per month, the employer's and central government's pension contributions were limited to that amount. The new rule states: 'Provided that where the wage of the member exceeds the wage ceiling notified by the Central Government, the contribution payable by the employer and the Central Government shall be limited to the amount payable on wages up to such wage ceiling.' This suggests the government may revise the wage ceiling, a demand raised by trade unions.

There is also a minor amendment regarding pension disbursing agencies. Previously limited to post offices, nationalised banks, treasuries, scheduled commercial banks, regional rural banks, or cooperative banks, the new rule anticipates future new types of agencies. The EDLI Scheme rules add definitions for 'insurance service provider', 'insurance policy', 'commissioner', 'member', and 'nominee'. A new provision requires the CBT to appoint a valuer for the insurance fund every three years, with the report placed before the CBT.

R. Karumalaiyan, a Centre of Indian Trade Unions leader and workers' representative on the CBT, told The Hindu that the amendments are merely cosmetic. He said the long-pending demands of increasing the minimum pension and addressing problems in distributing higher pension were ignored. 'The government ignored these demands. Also, the ceiling for pension, which was fixed in 2014, should have been changed. That also is not done in the Rules. This is highly disappointing,' he said.