Higher EPS pension: Pensioners request Labour Ministry to withdraw EPFO circular rejecting exempted employees' higher pension claims

The National Confederation of Pensioners’ Associations (NCPA), a prominent pensioners’ body representing PSU (public sector undertaking) and private sector employees, has sought immediate intervention of the Labour Ministry in the long-pending cases of higher Employees’ Pension Scheme (EPS) for employees from exempted establishments.

In a letter dated November 7, 2026, to Labour & Employment Minister Mansukh Mandaviya, the NCPA has requested the ministry to withdraw the Employees’ Provident Fund Organisation’s (EPFO) January 2025 circular that mandates internal trust rules to determine higher EPS pension criteria for employees from exempted establishments.

Giving reference to various cases where courts have said that provident fund rules can’t govern pension rights, the NCPA stresses that courts have also clarified that exempted and unexempted establishments stand at par when it comes to approving higher EPS pension cases for employees.


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The NCPA, in the letter, has urged the ministry to consider five key recommendations concerning higher EPS pension cases involving employees of exempted establishments.

1.Withdraw/rescind circular dated January 18, 2025

The NCPA has requested the Labour Ministry to formally withdraw the directive that mandates reliance on internal PF trust rules to determine higher EPS pension eligibility. The NCPA, in the letter, says the withdrawal of the circular will also clarify to field offices that internal trust ceiling clauses cannot be used to reject higher pension cases.

The NCPA says that, because of this circular, the EPFO is stopping many higher pension cases, citing that historical internal trust rules of an exempted establishment strictly mirrored the statutory wage ceilings.

2.Eradicate “class within a class" discrimination

The NCPA has requested the Labour Ministry to issue instructions ensuring parity between exempted and un-exempted establishment retirees as mandated under the Supreme Court and high court directives.

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The NCPA says that in many higher EPS pension court verdicts, including in the Bombay High Court’s October 19, 2026, decision in the Amit Gunvantrai Mehta & Ors. Vs. EPFO case, it has been said that provident fund trust rules cannot govern pension rights and exempted and unexempted establishments stand on par in terms of approving higher EPS pension applications.

“The EPFO cannot reject higher EPS pension applications on the ground that trust rules either cap employer contributions or omit enabling provisions for joint options,” the letter reads.

3.Universal processing of exempted applications

In the letter, the NCPA has also urged the Labour Ministry to direct all regional offices to process and approve joint higher EPS pension applications from exempted establishments in a uniform manner.

4.Waiver of penalty/interest

The NCPA says that if the higher EPS pension case of an exempted trust employee is delayed by the EPFO administration, the employee should be given a full waiver of any additional interest burden.

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Under the higher EPS pension option, the pension contribution is recalculated on the employee's actual salary rather than the applicable statutory wage ceiling.

An EPS member needs to deposit this difference into their pension fund. Since this differential amount is deposited for earlier years, the EPFO also charges interest on the outstanding contribution.

What the NCPA is saying is that since the delay is because of the EPFO and not from the employee’s side, such interest should be waived off.

5.Immediate issuance of demand notices & PPOs

In a crucial demand from the ministry, the NCPA seeks to expedite issuance of demand notices and revised Pension Payment Orders (PPOs) to deliver arrears and monthly pensions to senior citizens without further litigation.

What the NCPA implies here is that the pension amount that pensioners have lost because of a delay in the approval of higher EPS pension cases should be given soon in the form of arrears.

The NCPA also requests the Ministry to issue revised PPO orders showing a higher EPS pension amount for employees from exempted establishments.