EPFO Pension: Govt Rejects 11 Lakh Claims Seeking Higher Amount; Over 98% Applications Disposed Of

The long wait for higher pension under the Employees' Provident Fund scheme is finally over for many, as the government has released data on the processing of applications. Following the Supreme Court's directive, the EPFO has made substantial progress in clearing claims related to pension on higher wages.

"EPFO has processed and disposed of applications for pension on higher wages as per the directions of the Supreme Court in its judgment dated Nov. 4, 2022. As of July 16, 2025, more than 98.5% of applications have been disposed of by EPFO," Minister of State for Labour and Employment, Shobha Karandlaje, said in a written reply in the Lok Sabha.

The EPFO has rejected more than 11 lakh applications, while around four lakh were accepted. Chennai and Puducherry regions saw a high rejection rate, with 63,026 out of 72,040 applications turned down, according to the minister.

The issue of higher pension eligibility dates back to 2014, when the EPFO issued a circular limiting the benefits for employees earning above a certain threshold. However, a landmark Supreme Court ruling on November 4, 2022, clarified that EPF members enrolled before September 1, 2014, and still in service or retired thereafter, are eligible to opt for higher pensions based on actual salaries.

So far, 4,00,573 demand letters have been issued to applicants confirming eligibility, while 21,995 applications remain under process. Despite the progress, the government is yet to disclose detailed reasons behind the high rejection rate or provide a clear resolution timeline, leaving many pensioners uncertain about their future entitlements.

The Employees Pension Scheme amendment of August 22, 2014, increased the pensionable salary cap to Rs 15,000 per month from Rs 6,500 per month, allowing members and their employers to contribute 8.33% of their real earnings (if they surpassed the cap) to the EPS. It had allowed all EPS participants for six months, beginning September 1, 2014, to choose the amended system. Later, the EPFO extended the deadline for both members and employers to submit paperwork several times.