The Employees Provident Fund Organisation (EPFO) has raised concerns about a significant financial strain due to higher pension claims.
According to an internal note shared with the Central Board of Trustees (CBT), EPFO estimates that it may need ₹1,86,920 crore to settle claims for just 50% of the total applicants.
However, workers’ representatives have questioned the accuracy of this estimate, calling the analysis incomplete and demanding a more detailed report.
They argue that the figures presented by EPFO may be inflated to discourage higher pension claims.
Challenges in Processing Higher Pension Applications
EPFO has stated that a complete assessment can only be made after all higher pension applications are processed.
Interim evaluations will continue for every 50,000 demand letters sent to Employees’ Pension Scheme (EPS) subscribers who have opted for higher pensions.
Based on an analysis of 38,000 applicants, EPFO found a funding gap of around ₹9,500 crore, translating to ₹25 lakh per person.
The total estimated liability of ₹1,86,920 crore is based on settling half of the claims filed since 2014.
As of February 14, 2025, EPFO received approximately 17.49 lakh applications for higher pensions.
Out of these, 2.24 lakh applications were not forwarded by employers, while 3.92 lakh were returned for missing details.
Another 1.92 lakh applications are under review, and 2,19,155 applicants have been asked to pay additional contributions.
So far, 74,811 pensioners and 41,285 active employees have deposited the required additional amount.
EPFO has issued 24,001 pension payment orders but rejected 5.05 lakh applications.
Criticism from Pensioners and Trade Unions
Pensioners’ rights activists and trade unions have strongly opposed EPFO’s stance.
They argue that the Supreme Court has already ruled in favor of granting higher pensions to those who contributed based on actual wages rather than the wage ceiling.
Activists believe EPFO is overstating its financial burden to avoid making these payments.
Previously, EPFO had claimed a liability of ₹15 lakh crore, but that figure has now significantly dropped, raising doubts about the accuracy of its estimates.
CBT member and Centre of Indian Trade Unions leader R. Karumalaiyan has demanded that EPFO disclose the total additional contributions collected from workers who opted for higher pensions.
He accuses EPFO of deliberately delaying implementation to deny pensioners their rightful benefits.
According to him, the government must take responsibility for enforcing the Supreme Court’s decision.
EPFO currently has 7.71 crore active members contributing to provident and pension funds, while over 81 lakh pensioners receive benefits under EPS.
EPFO had argued in court that granting higher pensions to a few lakh employees would strain the fund, affecting the majority of subscribers.
However, pensioners’ advocates maintain that the organization is obligated to pay eligible employees in accordance with the law.
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