Parliament Question: Pension on Higher Wages

GOVERNMENT OF INDIA MINISTRY OF LABOUR AND EMPLOYMENT LOK SABHA UNSTARRED QUESTION NO. 173 TO BE ANSWERED ON 20.07.2026 PENSION ON HIGHER WAGES 173. SHRI N K PREMACHANDRAN: Will the Minister of LABOUR AND EMPLOYMENT be pleased to state: (a)whether the Government proposes to implement the High Court Judgment with respect to nullify the circular of Employees' Provident Fund Organisation (EPFO) implementing the pro-rata for calculating the pension on higher wages and if so the details of action taken thereon; (b)whether the Government proposes to direct the EPFO to implement the said judgement across the country and if so the details thereof; (c) whether the Government proposes to revise the pension on higher wages wrongly fixed on the basis of pro-rata and if so the details thereof; (d)whether the Government considered that the EPFO is duty bound to ensure the welfare of the laborers and pensioners and if so the details of action taken thereon; and (e)whether the EPFO proposes to revise circular to implement the High Court order to calculate pension on high wages without pro-rata and if so the details of action taken thereon? ANSWER MINISTER OF STATE FOR LABOUR AND EMPLOYMENT (SUSHRI SHOBHA KARANDLAJE) (a) to (e): EPFO has taken action to implement the directions contained in the Hon'ble Supreme Court Judgment dated 04.11.2022 in a time-bound manner. An online facility was provided and applications for validation of Joint Options processed in accordance with the applicable provisions. Pro-rata basis for calculation of pension is provided in Paragraph 12 of the Employees' Pension Scheme, 2026 and is equitable, treating both categories of pensioners, i.e., pensioners under wage ceiling and those with higher wages, on an equal footing. The Government remains committed to ensuring maximum benefits for workers under the EPS-2026 Scheme while taking into consideration the health of the Fund and the future liabilities thereon. *****