Bombay High Court Backs Private Employees Seeking Higher EPS-95 Pension

The Bombay High Court has ruled that EPFO cannot reject an otherwise eligible employee’s application for higher EPS-95 pension merely because the employer’s provident fund (PF) trust rules cap contributions at the statutory wage ceiling or do not provide for a higher-pension option.

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The judgment was delivered on October 19, 2026, by Justice Sandeep V. Marne. The court set aside EPFO orders rejecting higher-pension applications and directed the organisation to process and allow the petitioners’ joint-option applications within eight weeks.

What the Bombay High Court ruled

The case involved six connected writ petitions concerning employees and retired employees of establishments including Abbott India, Tata Communications, Raymond Steel and BEST Undertaking.

Reports on the judgment state that more than 40 employees were covered across these matters, including 39 retired BEST employees.

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The dispute arose after EPFO rejected applications for pension on higher wages, citing the rules of employers’ exempted PF trusts. EPFO had also relied on its January 18, 2025, circular, which required higher-pension eligibility in such cases to be examined with reference to the applicable trust rules.

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The High Court held that the rules of an exempted establishment’s PF trust operate in the field of provident fund and cannot, by themselves, be used to reject an otherwise eligible employee’s joint option for higher pension under EPS-95 pension.

The court also considered cases where older employment or contribution records were unavailable.

It said authorities should consider alternative methods of verification, including giving employees an opportunity to provide relevant information, rather than rejecting claims solely because certain records could not be produced.

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What employees and HR teams should know

• The ruling does not automatically make every EPFO member eligible for a higher pension.
• Employees must still meet the applicable EPS eligibility and contribution requirements.
• PF trust rules alone cannot be used as the reason to reject an eligible higher-pension joint option.
• EPFO has been given eight weeks to process and allow the applications covered by the judgment.

Why it matters for employers

The ruling is particularly relevant for companies operating exempted PF trusts and their HR teams handling pension records and employee claims.

It also places importance on maintaining accurate historical PF, salary and contribution records. Where records are unavailable, the judgment indicates that EPFO should consider other means of verification instead of treating the absence of a particular document as an automatic ground for rejection.

The decision follows the Supreme Court’s November 2022 judgment in EPFO v. Sunil Kumar B., which dealt with the higher-pension provisions under EPS, 1995. The Bombay High Court’s latest ruling applies that legal position to the specific disputes before it.

The relief, however, remains tied to the petitioners and the applicable statutory conditions. It should not be interpreted as a blanket order granting higher pension to all private-sector employees covered by EPFO.