**Executive Summary**
This document is a response to Unstarred Question No. 220 in Lok Sabha regarding EPF pensions on higher wages, to be answered on December 1, 2025. It details the government's actions to implement the Supreme Court's judgement on EPF pension on higher wages, addresses concerns regarding pro-rata pension withdrawals, and explains the existing framework for the EPS, 1995. A key action item is the processing of applications for validation of joint options.
**Key Points / Main Content**
* **Implementation of Supreme Court Judgement:**
* EPFO has acted to implement the directions of the Supreme Court judgement dated November 4, 2022, in a time-bound manner.
* An online facility was provided for submitting Applications for Validation of Joint Options.
* A total of 17.49 lakh applications were successfully submitted by pensioners/members by July 11, 2023.
* Employers forwarded 15.24 lakh applications to EPFO by January 31, 2025.
* Approximately 99% of received applications have been disposed of as of November 24, 2025.
* **Application Status and Demand Letters:**
* 4,27,308 Demand Letters have been issued.
* 34,060 cases were found ineligible due to non-remittance of demand amounts.
* 2,33,303 applicants deposited the demand amount/consent, including 96,274 continuing in service and 1,37,029 already retired.
* Pension Payment Orders (PPOs) have been issued to approximately 1,24,457 retired applicants, with 12,572 PPOs in finalization.
* **Pro-rata Pension:**
* The pro-rata basis for pension calculation is outlined in Para 12 of the Employees' Pension Scheme.
* This approach is considered equitable for both categories of pensioners, with the Supreme Court deeming it compliant.
* **Employees' Pension Scheme (EPS), 1995:**
* EPS, 1995, is a Defined Contribution-Defined Benefit Social Security Scheme.
* The fund comprises employer contributions (8.33% of wages) and Central Government budgetary support (1.16% of wages up to ₹15,000/month).
* Benefits are paid from these accumulations, and the fund is valued annually.
* The government provides a minimum pension of ₹1,000 per month to pensioners under EPS, 1995, through budgetary support.
**Impact Analysis**
**Stakeholder: EPFO**
* **Impact:** Responsible for implementing the Supreme Court's judgement and processing applications for higher EPF pensions in a time-bound manner. Accountable for issuing Demand Letters and finalising Pension Payment Orders (PPOs).
* **Action Required:** Continue processing the remaining applications, finalize the PPOs that are under finalisation.
**Stakeholder: Employers**
* **Impact:** Required to forward applications for validation of joint options to the EPFO.
* **Action Required:** Ensure that all applications are forwarded to EPFO by the specified deadline.
**Stakeholder: Pensioners/Members**
* **Impact:** Affected by the implementation of higher EPF pensions, subject to eligibility based on Supreme Court judgement and scheme rules. Impacted by minimum pension amounts.
* **Action Required:** Ensure remittances are completed where Demand Letters have been issued. Check the status of their applications and PPOs.
**Stakeholder: Government of India**
* **Impact:** Responsible for providing budgetary support for EPS, 1995 and ensuring maximum benefits for workers under EPS-95 scheme.
* **Action Required:** Continue to provide budgetary support and take steps to ensure the long term health of EPS-95 fund.
Key Entities Referenced
Employees' Provident Fund (EPF) pension: Pension provided under the Employees' Provident Fund scheme, subject of the parliamentary question regarding higher wages.
Employees' Pension Scheme (EPS), 1995: The pension scheme which the government addresses questions concerning calculations, pro-rata provisions, and funding in relation to disbursing higher EPF pensions.
Employees' Provident Fund Organisation (EPFO): The organization responsible for implementing the EPF and EPS, and processing pension applications, according to the document.
Ministry of Labour and Employment: The government ministry responsible for administering labour laws and employment policies including matters related to EPF and EPS.
Supreme Court: The judgment of the Supreme Court mandating the disbursal of EPF pension on higher wages.
GOVERNMENT OF INDIA
MINISTRY OF LABOUR AND EMPLOYMENT
LOK SABHA
UNSTARRED QUESTION NO. 220
TO BE ANSWERED ON 01.12.2025
EPF PENSION ON HIGHER WAGES
220. SHRI N K PREMACHANDRAN:
Will the Minister of LABOUR AND EMPLOYMENT be pleased to
state:
(a)whether the Government has initiated action to implement the
judgment of Supreme Court in a time bound manner to fix and
disburse Employees' Provident Fund (EPF) pension on higher
wages, if so, the details thereof;
(b)the details of the total number of applications received for pension
on higher wages till date;
(c)the details of the total number of applications in which higher
pension was sanctioned till date;
(d) whether the Government proposes to withdraw the pro-rata
pension, if so the action taken thereon and if not the reason
thereof;
(e)whether the Government has considered the recommendations of
High Empowered Monitoring Committee for the comprehensive
revival of Employees' Provident Fund (EPF) pension scheme and if
so, the details of action taken thereon; and
(f)whether the Government proposes to increase the minimum
pension of EPF, if so, the details thereof, and if not the reason
thereof?
ANSWER
MINISTER OF STATE FOR LABOUR AND EMPLOYMENT
(SUSHRI SHOBHA KARANDLAJE)
(a) to (c): EPFO has taken action to implement the directions
contained in Hon’ble Supreme Court Judgement dated 04.11.2022 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.
11.07.2023 out of which around 15.24 lakh applications were
Contd..2/-:: 2 ::
forwarded by employers to EPFO till last date i.e. 31.01.2025. As on
24.11.2025, nearly 99% of applications received in EPFO have been
disposed of. 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 have been already been issued to a
total of around 1,24,457 applicants while 12,572 PPOs are under
finalization.
(d): 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 Hon'ble Supreme
Court also did not find the same ultra-vires.
(e) to (f): The EPS, 1995 is a “Defined Contribution-Defined Benefit”
Social Security Scheme. The corpus of the Employees’ Pension Fund
is made up of (i) contribution by the employer @ 8.33 per cent of
wages; and (ii) contribution from Central Government through
budgetary support @ 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 31.03.2019, there is an actuarial deficit. However, the Government
is providing a minimum pension of Rs. 1000 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.
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