EPFO Disposes 99% of Pension on Higher Wages (PoHW) Cases

The Employees’ Provident Fund Organisation (EPFO) has successfully disposed of nearly 99 per cent of the applications submitted for higher pension under the Employees’ Pension Scheme (EPS) 1995.

This large-scale processing follows the Supreme Court’s judgment dated November 4, 2022, which directed EPFO to allow eligible employees and pensioners to opt for higher contributions toward a higher pension.

Minister of State for Labour & Employment Shobha Karandlaje informed the Lok Sabha that EPFO implemented the court’s directive through a time-bound and technology-enabled approach.

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.

Demand Letters, Eligibility, and Deposits

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.

The ministry clarified that eligibility was determined through detailed scrutiny of records, contribution history, and employer validations. The rejection of ineligible applications was attributed to non-compliance with contribution norms rather than procedural issues.

Pension Payment Orders Issued

For retired applicants who completed all formalities, EPFO has already issued 1,24,457 Pension Payment Orders (PPOs), ensuring they begin receiving higher pension benefits. An additional 12,572 PPOs are in the final stages of approval.

The issuance of PPOs marks the completion of the higher pension transition for each eligible retiree, enabling them to receive revised pension amounts based on updated contributions.

Scheme Framework and Government Commitment

The government reiterated that the pro-rata pension calculation prescribed under Para 12 of EPS 1995 is equitable for all categories of pensioners, including those under the wage ceiling and those contributing based on higher wages. The Supreme Court upheld this provision, confirming its validity.

EPS 1995 functions as a Defined Contribution–Defined Benefit social security scheme. The pension fund is financed by employer contributions at 8.33 per cent of wages and central government support at 1.16 per cent for wages up to ₹15,000 per month.

Despite the actuarial deficit noted in the 2019 valuation, the government continues to provide a minimum monthly pension of ₹1,000 and remains committed to strengthening the scheme’s long-term sustainability while ensuring maximum benefits for workers under EPS 1995.

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