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EPFO processed 98.5% of 15.24 lakh higher pension claims as per Supreme Court directive. Over 11 lakh applications were rejected, 4 lakh accepted.
So far, 4,00,573 demand letters have been issued to applicants confirming eligibility.
The Employees’ Provident Fund Organisation (EPFO) has made notable progress in addressing higher pension claims, following a Supreme Court directive. As of July 16, 2025, the EPFO has processed 98.5% of the 15.24 lakh applications received for higher pension entitlements, according to Minister of State for Labour and Employment, Shobha Karandlaje.
Despite processing the higher pension claims, over 11 lakh applications for higher pensions were rejected by EPFO, with just over 4 lakh applications getting accepted.
The turning point came with the Supreme Court’s ruling on November 4, 2022, which clarified that EPF members enrolled before September 1, 2014, and still in service or retired thereafter, are eligible to opt for pensions based on higher actual salaries. In line with this decision, the EPFO has reviewed all related applications.
So far, 4,00,573 demand letters have been issued to applicants confirming eligibility, while 21,995 applications remain under process. The government, however, has yet to disclose detailed reasons behind the high rejection rate or provide a clear resolution timeline.
EPFO’s Circular And SC’s Ruling
In 2014, the EPFO issued a circular that restricted higher pension benefits under the EPS to employees earning above a wage ceiling (initially Rs 6,500, later raised to Rs 15,000 per month). Employees earning above this threshold were not allowed to contribute to the pension scheme based on their actual salaries unless specific conditions were met.
This led to widespread discontent, as many employees wanted to contribute to the EPS based on their full salaries to secure higher pensions upon retirement.
The issue was challenged in various courts, leading to conflicting judgments, which ultimately reached the Supreme Court.
The Supreme Court delivered a landmark judgment clarifying the eligibility for higher pension benefits under the EPS. Key points of the ruling include:
Eligibility for Higher Pension:
Employees who were members of the Employees’ Provident Fund (EPF) before September 1, 2014, and either continued working or retired thereafter, are eligible to opt for a higher pension based on their actual salaries, without being restricted by the wage ceiling.
This applies to both serving employees and retirees who were part of the EPF before the 2014 amendment.
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A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
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