The Old Pension Scheme (OPS) has again become the point of discussion in October 2025, as talks on pension reforms and employee benefits are still going on in different parts of India. Along with growing inflation and increasing demands from the government employees, the new happenings keep coming up with the changing of laws which are very important for every worker and retiree to be informed.
What is the Old Pension Scheme?
The Old Pension Scheme is a defined benefit plan that promises retired government employees a fixed monthly pension dependent on their last drawn salary. On the contrary to the New Pension Scheme (NPS), OPS assures the income for a lifetime and incorporates DA revisions that are based on inflation.
October 2025 Update
During the month of October 2025, the EPFO and the Central Board of Trustees engaged in a discussion concerning the increase of the minimum pension under the Employees’ Pension Scheme (EPS-95), which is directly connected to the OPS demands. Speculations are that the minimum pension will go up from ₹1,000 to ₹2,500 every month, making it the first revision in more than ten years.
Moreover, the states that had already reinstated OPS for their workers are now thinking of bringing the benefits in line with the new pension structure. This is believed to be a major plus for a huge number of pensioners as well as for the present workers who are about to retire.
Pension Calculation Formula
In the Old Pension Scheme, the pension is computed as a percentage of the last basic salary plus DA drawn by the employee. The system of formula thus guarantees that the pensioners would always have the income which is adjusting to inflation throughout their life.
Old Pension Scheme Update at a Glance
| Feature | Previous Rule (Before Oct 2025) | New Update (Oct 2025) |
|---|---|---|
| Minimum Monthly Pension | ₹1,000 | ₹2,500 (proposed) |
| Dearness Allowance (DA) | Linked to inflation, revised twice a year | Continued, with higher base pension |
| Beneficiaries | Central & state govt employees, EPS-95 pensioners | Same, with wider coverage |
| Implementation Timeline | Static since 2014 | Expected rollout post-October 2025 |
Why This Matters
For the old-age pensioners, the raise of ₹1,000 to ₹2,500 signifies good financial security during retirement. With DA related to inflation, the nominal pension is going to rise further making it easier for the retirees to manage the increasing living costs. For the workers, the news reinforces the argument of reinstatement of OPS in more states.
Conclusion
The Old Pension Scheme Latest Update October 2025 marks a critical moment in the long-standing struggle of the pensioners and the government employees for their rights. By enhancing the lowest pension and keeping inflation-linked adjustments for the DA, the state is getting nearer to the goal of ensuring a dignified and secure old age for the retirees.