Higher Pension: EPFO Disposes Of 99 Per Cent Of Total Applications So Far

Retirement fund body EPFO has disposed of nearly 99 per cent of the applications seeking higher contributions for getting higher pension under the Employees' Pension Scheme (EPS) 1995, Parliament was informed on Monday. Minister of State for Labour & Employment Shobha Karandlaje stated in a written reply to Lok Sabha that the EPFO has taken action to implement the directions issued in the Supreme Court Judgement on November 4, 2022 in a time-bound manner.

An online facility was provided and a total 17.49 lakh applications for validation of joint options were successfully submitted by pensioners/ members till last date i.e. July 11, 2023 out of which around 15.24 lakh applications were forwarded by employers to Employees' Provident Fund Organisation (EPFO) till last date i.e. January 31, 2025, she informed the House.

As on November 24, 2025, nearly 99 per cent of applications received in EPFO have been disposed of, she also stated.

As per her reply, a total of 4,27,308 demand letters have been issued, out of which 34,060 cases have been found ineligible later on mainly due to non-remittance of demand amount.

Around 2,33,303 applicants have deposited the demand amount/ consent out of which 96,274 are continuing in service and 1,37,029 have already retired.

Out of these already retired applicants, PPOs (pension payment orders) have already been issued to a total of around 1,24,457 applicants while 12,572 PPOs are under finalisation, she informed the House.

She told the House that Pro-rata basis for calculation of pension is provided in Para 12 of the Employees' Pension Scheme and is equitable, treating both categories of pensioners i.e. pensioners under wage ceiling and those with higher wages on an equal footing and the Supreme Court also did not find the same ultra-vires.

The EPS, 1995 is a 'Defined Contribution-Defined Benefit' Social Security Scheme. The corpus of the Employees’ Pension Fund is made up of contribution by the employer at the rate of 8.33 per cent of wages; and contribution from central government through budgetary support at the rate of 1.16 per cent of wages up to an amount of Rs 15,000 per month.

All benefits under the scheme are paid out of such accumulations. The fund is valued annually as mandated under paragraph 32 of the EPS, 1995 and as per the valuation of the fund as on March 31, 2019, there is an actuarial deficit.

However, it stated that the government is providing a minimum pension of Rs 1,000 per month to the pensioners under the EPS, 1995 by providing budgetary support, which is in addition to the budgetary support of 1.16 per cent of wages provided annually towards EPS to Employees’ Provident Fund Organisation (EPFO).

The Government of India is committed to ensure maximum benefits for workers under the EPS-95 scheme, duly taking into consideration the health of the respective funds as well as the future liabilities thereon, she stated.