EPFO has issued new Pension Payment Orders (PPOs) to 1.24 lakh retired employees under EPS-1995. Approximately 99% of total applications have been processed. Pension is calculated on a pro-rata basis.
EPFO Update: The Ministry of Labour informed Parliament that approximately 99 percent of applications from individuals seeking higher pensions on higher salaries under the Employees' Pension Scheme (EPS-1995) have been processed. This information was provided by Minister of State Shobha Karandlaje in a written reply to the Lok Sabha.
Expedited Process After Supreme Court Verdict
Following the Supreme Court's decision on November 4, 2022, EPFO accelerated the process and launched an online facility for it. By July 11, 2023, a total of 17.49 lakh pensioners and existing members had validated their joint option. Out of these, approximately 15.24 lakh applications were forwarded by employers to EPFO by January 31, 2025.
What Has Happened So Far
As of November 24, 2025, EPFO has decided on almost all applications. Demand letters were sent to a total of 4,27,308 individuals, asking them to deposit the outstanding amount. Out of these, 34,060 individuals were later found ineligible. Among the remaining, 2,33,303 applicants deposited the specified amount or gave their consent. Of these, 96,274 individuals are currently employed, and 1,37,029 have retired. Among the retired individuals, 1,24,457 have been issued new Pension Payment Orders (PPOs), while the orders for 12,572 are in the final stage.
Pension Calculation
The Minister clarified that pension calculation will be strictly on a pro-rata basis, as stipulated in Paragraph-12 of the scheme. This has also been upheld by the Court. This ensures equitable treatment for pensioners with both lower and higher salaries.
What is EPS-1995?
EPS-1995 is a ‘Defined Contribution-Defined Benefit’ scheme. Under this, employers contribute 8.33%, and the government contributes 1.16% (up to a maximum monthly salary of Rs 15,000). A valuation in March 2019 revealed an actuarial deficit in the fund. Despite this, the government is providing a minimum monthly pension of Rs 1,000 and continues its annual budget support of 1.16%.
The Ministry of Labour stated that the government is fully committed to providing maximum benefits to employees, but the health of the fund and future liabilities are also being considered.
