Higher EPS pension: PMO examined higher pension matter and Rajya Sabha committee asked for report, says MP Gopchade

Despite the Supreme Court’s 2022 ruling allowing eligible employees to make Employees’ Pension Scheme (EPS) contributions on their actual basic, only about 1.5 lakh applicants had received higher EPS pension payment orders as of March 31, 2026. But now, there may be some hope for applicants whose pleas for higher EPS pensions are still pending before the Employees’ Provident Fund Organisation (EPFO). The matter is reportedly being examined by the Prime Minister’s Office (PMO).

Bhartiya Janta Party’s Rajya Sabha Member of Parliament (MP), Ajeet Madhavrao Gopchade, told ET Wealth Online that following a high-level meeting at the PMO, the matter is being examined by it in the context of two Special Leave Petitions (SLPs) pending before the Supreme Court.

“In view of the pending judicial proceedings, the question of further action on the matters connected with these petitions is to be considered in light of the outcome of the Supreme Court’s judgment,” the MP said about the standard procedure that the PMO can follow in the higher EPS pension case.


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Gopchade also raised the issue of the uniform implementation of higher EPS pension in the Rajya Sabha on August 6, 2026.

The MP said that, in reply to Gopchade’s question, the Rajya Sabha committee on government assurances has given him assurance to look into the matter.

Gopchade said that the Rajya Sabha committee has asked the Ministry of Labour and Employment to furnish the requisite status report on the assurance.

The committee has also requested the labour ministry to send a status note on the assurance, inter alia indicating its present status, the MP said, quoting a letter sent by the Rajya Sabha committee to the Ministry of Labour.

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Objections of higher EPS pension applicants from exempted establishment

Recently, the National Confederation of Pensioners’ Associations (NCPA), a prominent pensioners’ body representing PSU (public sector undertaking) and private sector employees, has sought the immediate intervention of the labour ministry in long-pending higher EPS pension cases for employees from exempted establishments.

The organisation has requested the ministry to withdraw the EPFO’s January 2025 circular, which mandates internal trust rules to determine higher EPS pension criteria for employees from exempted establishments.

The organisation says that since exempted trust rules allow EPS contributions at the wage ceiling, the EPFO rejects applications of exempted trust employees who want to contribute at the actual wage ceiling.

The NCPA also argues that many court judgements have clarified that exempted and unexempted establishments stand at par when it comes to approving higher EPS pension cases for employees.

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What is higher EPS pension?

The maximum EPS contribution for most employees is made on the basis of the wage ceiling, which is Rs 25,000 at present. As per the EPFO rules, the EPS contribution can be 8.33% of the employee’s basic pay.

At 8.33% of Rs 25,000, the maximum monthly EPS contribution, thus, can be Rs 2,083 for those who are contributing at the wage ceiling.

But in a ruling on November 4, 2022, the Supreme Court allowed employees to contribute on their actual basic pay. It means that if someone had a Rs 50,000 basic pay, their contribution would be 8.33% of Rs 50,000.

A higher EPS contribution means the employee will get a higher pension amount at retirement compared to those whose EPS contribution was made at the wage ceiling.

Does the Supreme Court ruling automatically allow EPS contributions on actual basic pay?

No, the Supreme Court decision doesn’t mean that applicants automatically get the higher EPS pension option. They need to apply to the EPFO to get the higher EPS pension option approved.

However, if their application for a higher EPS pension is approved, they need to pay dues to the EPFO to receive the higher pension. As per an EPFO circular dated May 11, 2023, the calculation for dues is done as follows:

1. 8.33% of the employer’s share on higher actual pay (w.e.f. November 16, 1995, or the date the pay exceeds the wage ceiling, whichever is later)
2. 1.16% of employer share on higher pay above Rs 15,000 per month w.e.f. September 1, 2014, towards increased contribution.
3. All the deposits already deposited to the EPS account will be deducted from the sum of (1) and (2) mentioned above.
4. The historical interest rate announced by the EPFO will be taken to calculate the interest amount that must be taken back from the EPF account to recover the accrued interest on past missing EPS contributions.

Higher EPS pension status in India

In August 2026, Shobha Karandlaje, Minister of State for Labour and Employment, revealed in Parliament that as of August 5, 2026, as many as 15.24 lakh applications for a higher EPS pension had been received, out of which 11,595 applications were pending.

The minister also said that as of March 31, 2026, as many as 85,84,604 pensioners were covered under the EPS.

Out of these pensioners, a total of 1,49,806 pension payment orders (PPOs) for higher wages had been issued by March 31, 2026.