Lok Sabha Question No. 220 (UNSTARRED), answered on 2025-12-01
Subject: EPF Pension on Higher Wages
Ministry: LABOUR AND EMPLOYMENT
Asked by: Shri N K Premachandran

## GOVERNMENT OF INDIA

## MINISTRY OF LABOUR AND EMPLOYMENT LOK SABHA UNSTARRED QUESTION NO. 220

## TO BE ANSWERED ON 01.12.2025

## EPF PENSION ON HIGHER WAGES

## 220.  SHRI N K PREMACHANDRAN:

Will the Minister of LABOUR AND EMPLOYMENT be pleased to state:

- (a)whether  the  Government  has  initiated  action  to  implement  the judgment of Supreme Court in a time bound manner to fix and disburse  Employees'  Provident  Fund  (EPF)  pension  on  higher wages, if so, the details thereof;
- (b)the details of the total number of applications received for pension
- on higher wages till date;
- (c)the  details  of  the  total  number  of  applications  in  which  higher
- pension was sanctioned till date;
- (d)  whether  the  Government  proposes  to  withdraw  the  pro-rata pension,  if  so  the  action  taken  thereon  and  if  not  the  reason thereof;
- (e)whether the Government has considered the recommendations of High  Empowered  Monitoring  Committee  for  the  comprehensive revival of Employees' Provident Fund (EPF) pension scheme and if so, the details of action taken thereon; and
- (f)whether  the  Government  proposes  to  increase  the  minimum pension of EPF, if so, the details thereof, and if not the reason thereof?

## ANSWER

## MINISTER OF STATE FOR LABOUR AND EMPLOYMENT (SUSHRI SHOBHA KARANDLAJE)

(a) to (c): EPFO  has  taken  action  to  implement  the  directions contained in Hon'ble Supreme Court Judgement dated 04.11.2022 in a  time  bound  manner.  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. 11.07.2023   out   of   which   around   15.24  lakh  applications  were

forwarded by employers to EPFO till last date i.e. 31.01.2025. As on 24.11.2025, nearly 99% of applications received in EPFO have been disposed of.  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. Out of these already retired applicants, PPOs have been already been issued to a total  of  around  1,24,457  applicants  while  12,572  PPOs  are  under finalization.

(d): Pro-rata  basis  for  calculation  of  pension  is  provided  in Para 12 of the Employees' Pension Scheme and is equitable, treating both categories of pensioners i.e. pensioners under wage ceiling and those with higher wages on an equal footing and the Hon'ble Supreme Court also did not find the same ultra-vires.

(e) to (f): The EPS, 1995 is a 'Defined Contribution -Defined Benefit' Social Security Scheme. The corpus of the Employees' Pension Fund is  made  up  of  (i)  contribution  by  the  employer  @  8.33  per  cent  of wages;  and  (ii)  contribution  from  Central  Government  through budgetary  support  @  1.16  per  cent  of  wages  up  to  an  amount  of Rs.15,000/- per month. All benefits under the scheme are paid out of such accumulations. The fund is valued annually as mandated under paragraph 32 of the EPS, 1995 and as per the valuation of the fund as on 31.03.2019, there is an actuarial deficit. However, the Government is  providing  a  minimum  pension  of  Rs.  1000  per  month  to  the pensioners  under  the  EPS,  1995  by  providing  budgetary  support, which  is  in  addition  to  the  budgetary  support  of  1.16  per  cent  of wages provided annually towards EPS to Employees' Provident Fund Organisation (EPFO). The Government of India is committed to ensure maximum benefits for workers under the EPS-95 scheme, duly taking into consideration the health of the respective funds as well as the future liabilities thereon.

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