EPFO disposes of 99% of higher pension applications under EPS 1995: Govt

Over 1.5 million applications processed; most retirees now getting revised pensions

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The Employees’ Provident Fund Organisation (EPFO) has processed almost all applications seeking higher contributions for enhanced pensions under the Employees’ Pension Scheme (EPS) 1995, the government told Parliament on Monday.

 

Minister of State for Labour & Employment, Shobha Karandlaje, said in a written reply to the Lok Sabha that nearly 99 per cent of applications received by EPFO have been disposed of, following the Supreme Court’s directions issued on November 4, 2022, in a time-bound manner. The minister attributed the successful processing to the online facility provided for submitting applications.

 

Application numbers and processing

A total of 1,749,000 applications for validation of joint options were submitted by pensioners and members before the deadline of July 11, 2023. 

Out of these, 1,524,000 applications were forwarded by employers to EPFO by January 31, 2025.

 

As of November 24, 2025, nearly 99 per cent of applications had been disposed of.

 

Of the total applications, 427,000 demand letters were issued:

 

34,060 cases were found ineligible, primarily due to non-payment of the required amount.

 

Around 233,303 applicants deposited the demand amount or consented to the terms, of which 96,274 are still in service and 137,029 have already retired.

 

For retired applicants, 124,457 Pension Payment Orders (PPOs) have been issued, while 12,572 PPOs are under finalisation. 

How EPS 1995 works

The EPS, 1995 is a ‘Defined Contribution-Defined Benefit’ social security scheme, funded through:

 

Employer contribution: 8.33 per cent of wages

 

Central government support: 1.16 per cent of wages (up to Rs 15,000 per month)

 

All benefits are disbursed from these accumulations, which are valued annually. Despite an actuarial deficit in the fund as of March 31, 2019, the government ensures a minimum pension of Rs 1,000 per month to EPS retirees, supported through budgetary allocations.

 

The minister emphasised that pension calculations on a pro-rata basis are equitable, treating both wage-ceiling and higher-wage pensioners fairly, and were upheld by the Supreme Court.

 

“The Government of India is committed to ensuring maximum benefits for workers under EPS-1995, while maintaining the financial health of the fund and addressing future liabilities,” Shobha Karandlaje added.

 

(with inputs from PTI)