Prime Minister's Office examines issue of higher EPS pension

Applicants awaiting the clearance of their applications pending before the Employees' Provident Fund Organisation (EPFO) for a higher EPS pension see a ray of hope. Bharatiya Janata Party Rajya Sabha MP Ajit Madhavrao Gopchade told 'The Economic Times' that the matter is being examined following a high-level meeting held in the Prime Minister's Office (PMO). This examination is being conducted in the context of two special leave petitions (SLPs) pending in the Supreme Court.

MP Gopchade stated that since judicial proceedings are currently underway, further action on the issues related to these petitions will be considered keeping in view the outcome of the Supreme Court's judgment. He added that this is a standard procedure followed by the PMO.

Additionally, Ajit Madhavrao Gopchade raised the issue of uniform implementation of the higher EPS pension in the Rajya Sabha on 6 August, 2026. According to the MP, the Rajya Sabha Committee on Government Assurances has assured him of examining the matter. The Committee has asked the Ministry of Labour and Employment to submit a necessary status report regarding this assurance. Citing a letter sent by the Rajya Sabha Committee to the Ministry of Labour, Gopchade said that the Committee has demanded a status note showing the current position from the Ministry.

On the other hand, the National Confederation of Pensioners Associations (NCPA), a pensioner body representing employees of public sector undertakings (PSUs) and the private sector, has demanded immediate intervention by the Ministry of Labour in the long-pending cases of employees of exempted establishments. The NCPA has requested the Ministry to withdraw the circular issued by the EPFO in January 2025. According to this circular, it is mandatory to follow internal trust rules to determine the criteria for a higher EPS pension for employees of exempted establishments.

The organisation's argument is that the rules of exempted trusts permit EPS contributions on the wage ceiling, due to which the EPFO rejects the applications of employees who wish to contribute on the actual wage ceiling. The NCPA has further argued that several court rulings have clarified that exempted and non-exempted organisations hold equal status in granting a higher EPS pension.

Detailing the process of the higher EPS pension, the report mentions that the maximum limit for EPS contribution for most employees is currently ₹25,000. According to EPFO rules, the EPS contribution can be 8.33% of an employee's basic salary. The maximum monthly EPS contribution on a wage ceiling of ₹25,000 comes to ₹2,083. However, on 4 November, 2022, the Supreme Court allowed employees to make contributions on their actual basic salary. For example, if someone's basic salary is ₹50,000, their contribution will be 8.33% of ₹50,000. Making a higher contribution in this manner yields a higher pension at the time of retirement compared to employees contributing on the wage ceiling.

However, the Supreme Court's decision does not automatically grant a higher EPS pension. Applicants have to apply to the EPFO to avail of this option. If the application is approved, the employee has to pay the due amount to the EPFO to receive the higher pension. By 31 March, only about 1.5 lakh applicants had been issued higher EPS pension payment orders, whereas the Supreme Court had allowed contributions on actual basic salaries in 2022.