EPFO higher salary pension status: Govt says 98.5% cases settled, over 11 lakh applications rejected

The Employees' Provident Fund Organisation (EPFO) has made significant progress in processing applications for higher pension entitlements following a Supreme Court directive. As of 16th July 2025, the EPFO has processed 98.5% of the 15.24 lakh applications received, according to Minister of State for Labour and Employment, Shobha Karandlaje. This development addresses a long-standing issue regarding whether pensions can be drawn based on actual salaries rather than a capped limit.

The controversy around higher pension eligibility has been ongoing since 2014, when the EPFO released a circular stating that pensions based on higher salaries were only available to employees earning above a certain threshold at that time. A Supreme Court ruling on 4th November 2022 clarified that those who were EPF members prior to 1st September 2014, and either still employed or retired thereafter, are eligible to opt for this higher pension scheme. This ruling was a significant turning point, providing clarity to many who were uncertain about their pension rights.

In the Lok Sabha, Minister Karandlaje confirmed that the EPFO reviewed all related applications in accordance with the Supreme Court's order. Despite the high processing rate, a substantial number of applications were rejected. Out of the 15.24 lakh applications, 11,01,582 were rejected. The rejection rate is especially high in the Chennai and Puducherry region, where 63,026 out of 72,040 applications were denied. This has caused concern among applicants in these areas.

Detailed statistics revealed that 4,00,573 demand letters for acceptance of higher pension applications were issued, and only 21,995 applications remain pending. The government has not provided detailed reasons for the high rejection rates nor specified a timeline for resolving the pending applications. The lack of specific reasons for rejections has left many applicants seeking further clarity.

Questions raised by Adoor Prakash in Parliament sought clarity on the government's awareness of the high rejection rate and its potential plans to expedite the resolution of pending cases. The government's response, while confirming the progress in processing, left some queries about the reasons behind the rejections unanswered.

The government's strategy moving forward includes managing the remaining 1.5% of applications. While no direct timeline has been provided, it is anticipated that these will be addressed promptly. However, applicants remain anxious for a resolution.