Higher Pension under EPS 1995: Latest Lok Sabha Update on Implementation, Applications & Pension Status (2025)
The discussion on Higher Pension under EPS 1995 continues to gain national attention, especially after the Supreme Court’s 04 November 2022 judgment. A recent reply in the Lok Sabha (Unstarred Question No. 220, dated 01 December 2025) provides an important update on the implementation status, number of applications, eligibility decisions, and the Government’s stand on minimum pension under EPS-95.
This article simplifies the entire Lok Sabha reply into easy-to-understand points for employees, pensioners, and HR professionals.
1. Implementation of Supreme Court Judgment on Higher Pension
The Ministry of Labour and Employment confirmed that the Employees’ Provident Fund Organisation (EPFO) has taken time-bound action to implement the Supreme Court judgment on higher pension.
Key Highlights
- EPFO provided an online facility for submission of Joint Option Forms.
- 17.49 lakh applications were submitted by pensioners/members before 11 July 2023.
- 15.24 lakh applications were forwarded by employers to EPFO by 31 January 2025.
- As of 24 November 2025, nearly 99% of all applications received by EPFO are disposed of.
This shows that the major procedural phase of implementation has been significantly completed.
2. Status of Higher Pension Applications
The Lok Sabha reply provides exact figures on processing and eligibility.
Detailed Breakdown
- 4,27,308 demand letters were issued by EPFO.
- 34,060 cases were later found ineligible, mainly due to non-payment of the required demand amount.
- 2,33,303 applicants successfully deposited their demand amount or provided consent.
- 96,274 are still in service.
- 1,37,029 have already retired.
PPO (Pension Payment Order) Issuance
- Out of the retired applicants, 1,24,457 PPOs have already been issued.
- 12,572 PPOs are currently under finalization.
This indicates that a large majority of eligible retired applicants have already started receiving their revised higher pension.
3. Government’s Position on Pro-Rata Pension
One common concern is whether the Government plans to withdraw the pro-rata calculation of pension.
Official Clarification
- Pro-rata pension is part of Para 12 of the EPS 1995 scheme.
- It ensures equitable treatment between pensioners under the wage ceiling and those opting for higher wages.
- The Supreme Court has also not found the pro-rata method to be invalid or unconstitutional.
Hence, there is no proposal to withdraw the pro-rata pension system.
4. Recommendations of the High Empowered Monitoring Committee
The Government has acknowledged the committee’s recommendations on strengthening the EPS 1995 pension scheme.
Important Points
- EPS 1995 is a Defined Contribution–Defined Benefit scheme.
- The pension fund is financed by:
- 8.33% employer contribution, and
- 1.16% Central Government contribution (up to ₹15,000 wages).
- The fund is valued annually, and according to the 2019 valuation, the fund continues to face an actuarial deficit.
The Government’s actions remain cautious, focusing on the financial health and long-term sustainability of the pension fund.
5. Will Minimum Pension under EPS Increase?
This is the biggest question for many pensioners.
Current Position
- The Government continues to provide ₹1,000 per month as minimum pension under EPS-95, supported by budgetary allocations.
- There is no immediate proposal mentioned in the Lok Sabha reply to increase this minimum pension.
- However, the Government reiterated its commitment to ensuring maximum benefits for workers, keeping in view the fund’s condition and future liabilities.
Conclusion
The latest Parliamentary update shows that the process of implementing Higher Pension under EPS 1995 is almost complete, with most eligible applicants receiving or nearing issuance of their revised PPOs. While pro-rata pension continues, and the minimum pension remains unchanged for now, the Government maintains that worker welfare and fund sustainability remain top priorities.