EPFO Higher Pension: 98.5% Of 1.5 Million Higher Wage Applications Processed, 21,995 Still Pending

The Employees' Provident Fund Organisation (EPFO) has processed and disposed of 98.5 per cent of the 1,524,150 applications for higher wage pension (PoHW) as of July 16, 2025. Minister of State for Labour and Employment, Shobha Karandlaje, presented these figures in a written reply in the Lok Sabha on Monday, July 21, 2025. Out of the total applications, the EPFO issued 400,573 "demand letters" to eligible applicants, while it rejected 1,101,582 applications; there were 21,995 applications pending at the current count. The EPFO acted upon directives from a Supreme Court judgment issued on November 4, 2022, concerning employees' pension options and the amended Employees' Pension Scheme, 2014.

Supreme Court's Landmark Judgment Regarding EPS

The Supreme Court's judgment fundamentally altered the Employees' Pension Scheme (EPS), 1995, pension landscape. The Court upheld the 2014 Employees' Pension (Amendment) Scheme, enacted on August 22, 2014, which increased the "pensionable salary" cap from Rs 6,500 to Rs 15,000 per month. This amendment also permitted members and their employers to contribute 8.33 per cent of their actual salaries (if exceeding the cap) to the EPS.

Initially, as of September 1, 2014, a six-month window was provided to EPS members to opt for the amended scheme. The Supreme Court's ruling included restoring employees' rights to opt for pension calculations based on their actual (uncapped) salaries, rather than the statutory ceiling of Rs 15,000 per month. The Court also invalidated the mandatory 1.16 per cent additional contribution from salaries above Rs 15,000, declaring it "ultra vires" of the Employees' Provident Fund and Miscellaneous Provisions Act, 1952. The EPFO later extended the submission deadline multiple times for both EPF members and employers.

Navigating Deadlines And Implementation Challenges

The original four-month deadline for submissions by the Court, ending March 3, 2023, was extended multiple times by the EPFO due to procedural complexities and numerous stakeholder requests. Employees and pensioners were given a final submission deadline of July 11, 2023, for their 'Validation of Option' or 'Joint Option' applications. Employers, however, received several extensions to upload supporting wage details, with their final deadline set for January 31, 2025.

Implementing this judgment presented significant hurdles, including KYC mismatches, employer non-compliance in submitting wage data, and ambiguities during pension computation. Due to these, a high rejection rate—72.3 per cent of processed applications (11,01,582 applications)—stemmed from applicants' ineligibility based on the Court's criteria, incomplete wage documentation, or delayed employer verifications.

Processing Of Higher Pension Applications

Notably, the EPFO deployed an online application system in February 2023 to streamline submissions. However, the organisation had to grant 17 extensions for wage-detail uploads due to the delays from the employers' side.

Now, the pensioners whose applications have been approved for higher pension are receiving individualised demand notices for arrears contributions. This is calculated on a case-by-case basis, factoring in service duration and salary history.