Out Of 15 Lakh Claims, EPFO Rejects 11 Lakh Higher Pension Request
The turning point came with the Supreme Court's ruling on November 4, 2022, which clarified that EPF members enrolled before September 1, 2014, and still in service or retired thereafter, are eligible to opt for pensions based on higher actual salaries. In line with this decision, the EPFO has reviewed all related applications.
So far, 4,00,573 demand letters have been issued to applicants confirming eligibility, while 21,995 applications remain under process. The government, however, has yet to disclose detailed reasons behind the high rejection rate or provide a clear resolution timeline.
EPFO's Circular And SC's Ruling
In 2014, the EPFO issued a circular that restricted higher pension benefits under the EPS to employees earning above a wage ceiling (initially Rs 6,500, later raised to Rs 15,000 per month). Employees earning above this threshold were not allowed to contribute to the pension scheme based on their actual salaries unless specific conditions were met.
This led to widespread discontent, as many employees wanted to contribute to the EPS based on their full salaries to secure higher pensions upon retirement.
The issue was challenged in various courts, leading to conflicting judgments, which ultimately reached the Supreme Court.
The Supreme Court delivered a landmark judgment clarifying the eligibility for higher pension benefits under the EPS. Key points of the ruling include:
Eligibility for Higher Pension:
Employees who were members of the Employees' Provident Fund (EPF) before September 1, 2014, and either continued working or retired thereafter, are eligible to opt for a higher pension based on their actual salaries, without being restricted by the wage ceiling.
This applies to both serving employees and retirees who were part of the EPF before the 2014 amendment.
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