The Employees’ Provident Fund Organisation (EPFO) has received 15.24 lakh claims for higher pension based on higher contributions and issued 1.49 lakh Pension Payment Orders (PPOs) to retired applicants.
Labour Minister of State Shobha Karandlaje provided the figures in a written reply in the Lok Sabha. The process follows the Supreme Court’s November 4, 2022 judgment on higher pension based on contributions on higher wages.
What is the higher-pension option?
The option allows eligible EPFO members to contribute towards pension based on their actual wages, subject to the applicable rules, instead of the pensionable salary ceiling.
A higher pension contribution can increase the pension payable after retirement. However, it can also mean a greater allocation towards the pension component during the contribution period.
How many pensioners are covered under EPS?
The Employees’ Pension Scheme had 85.85 lakh pensioners as of March 31, 2026.
The government said ₹15,819.28 crore had been disbursed as pension under the scheme up to that date.
It also stated that EPS 1995 has been superseded by EPS 2026.
What is the minimum pension?
The government provides budgetary support to ensure a minimum pension of ₹1,000 per month for eligible pensioners under the earlier EPS framework.
It also contributes 1.16% of wages, subject to the applicable wage ceiling, towards EPS. The pension fund receives employer and government contributions, and its corpus is valued annually.
What has changed in EPFO withdrawals?
EPFO has introduced a 12-month waiting period for premature final EPF settlement and a 36-month waiting period for withdrawal benefits under EPS, according to the government.
At the same time, partial withdrawals have been simplified and grouped into three categories: essential needs, housing needs and special circumstances.
Members can withdraw up to 75% of their EPF balance under these provisions. Eligible purposes include unemployment, medical emergencies, education and housing.
For special circumstances, members can withdraw up to 75% of their balance twice a year without assigning a reason, the government said.
What does this mean for EPFO members?
The latest figures show the scale of the higher-pension exercise, with 15.24 lakh claims received and 11,595 still pending as of August 5.
For members opting for higher pension, the key consideration is the trade-off between allocating more towards the pension component during the contribution period and receiving a potentially higher pension after retirement.
For other subscribers, the withdrawal changes determine how much of their EPF savings they can access and under what circumstances before retirement.
The government said the changes seek to balance social-security coverage with the long-term sustainability of the pension fund and its future liabilities.
-With PTI inputs
