PMO Takes Cognizance of Higher EPS-95 Pension Issue; Rajya Sabha Committee Seeks Report

To qualify for a higher pension, employees are required to deposit the differential arrears based on their actual salary. Consequently, associations are demanding a waiver of the additional interest accrued due to administrative delays on the part of the EPFO.

There is significant news for pensioners regarding the higher EPS-95 pension. In light of Supreme Court directives and ongoing litigation, the Prime Minister’s Office (PMO) has begun examining the matter, and the Rajya Sabha Committee on Government Assurances has requested a detailed status report from the Ministry of Labour. The issue was raised in the Rajya Sabha by Member of Parliament Ajit Gopichand. Here is an overview of the situation.

In 2022, the Supreme Court ruled that employees could contribute to the EPS based on their actual basic salary, which would result in a higher pension upon retirement. However, as of March 31, only 150,000 individuals have received orders for a higher pension, indicating a slow pace in processing these cases.

Over 11,000 Applications Remain Pending

Out of 1.524 million (15.24 lakh) applications received, 11,595 remain pending. Specifically, applications from employees of 'exempted establishments' are stalled due to an EPFO ​​circular issued in January 2025. Pensioner associations have demanded the withdrawal of this circular.

According to reports, the EPFO ​​received over 1.5 million applications for a higher EPS pension, the majority of which are either still being processed or remain unresolved. 'Paragraph 26(6)' of the EPS scheme has proven to be a major administrative and technical hurdle for both employees and employers regarding contributions based on higher wages; there have been persistent demands to address and resolve this issue. Demand for Uniform Rules

Concerns have been raised regarding the inconsistent application of rules for higher pensions across various companies and trusts—specifically within the private sector, public sector, and exempted establishments. There is a call for the adoption of a uniform and transparent process for all. Recently, under EPFO ​​regulations, the wage ceiling for the Employees' Pension Scheme (EPS) was increased to ₹25,000; this development has intensified discussions surrounding other pension-related demands and existing discrepancies.