EPS-95 higher pension row: Pensioners’ body writes to President Murmu, seeks withdrawal of EPFO's ‘flawed’ circular

The National Confederation of Pensioners’ Associations (NCPA), which represents over 1 million pensioners from public sector undertakings (PSUs) and exempted provident fund establishments, has written to President Droupadi Murmu seeking her intervention on pension on higher wages (PoHW) under the Employees’ Pension Scheme, 1995 (EPS-95).

In a memorandum dated October 23, 2026, the association urged the President to direct the Employees’ Provident Fund Organisation (EPFO) to withdraw its January 18, 2025, circular. Here’s what retirees and pensioners need to know.

According to the letter, EPS-95 was introduced under Section 6A of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, funded by diverting 8.33% of employer contributions, subject to historical wage ceilings of ₹5,000, ₹6,500, and subsequently ₹15,000.

Recognising that these ceilings restricted higher-wage earners, the Ministry of Labour issued Notification No. 134 on February 28, 1996, effective March 16, 1996, establishing a framework for higher-wage earners' pensions based on actual salaries.

The NCPA said the EPFO circular of January 18, 2025, “weaponises a technicality regarding the historical language of internal trust rules of exempted establishments, which mandatorily mirrored the government’s statutory wage ceilings (Rs. 6,500/15,000), transforming past legal compliance into a bureaucratic trap to mass-reject legitimate higher pension applications.”

It also cited a Madras High Court Division Bench ruling of July 9, 2026, which it said held “that internal trust rules are merely administrative arrangements for Provident Fund and cannot override parent legislation (under EPS-95) enacted by Parliament.”

The NCPA pointed to the Supreme Court’s judgments in R.C. Gupta (2016) and Employees’ Provident Fund Organisation vs. Sunil Kumar B. (2022), arguing that the legal framework for higher pension under EPS-95 is already settled.

It said that while eligible pensioners from both exempted and unexempted establishments have received higher pension orders, retirees from some exempted establishments are facing rejections.

Citing a parliamentary disclosure of August 10, 2026, the association said more than 1,49,806 higher pension orders have been issued. It added that over 400 writ petitions and appeals are pending across 18 High Courts, while 26 judgments covering more than 200 petitions have gone in favour of pensioners.

The NCPA alleged that pensioners within the same PSUs, including SAIL, HAL, BHEL, IOCL, HMT, BEL and ITI, were being treated differently depending on their units and geographical postings.

It also referred to a Ministry of Labour and Employment communication of May 31, 2023, which it said attributed the confusion over higher pension claims to “EPFO’s own mismanagement”.

The association has requested three key interventions:

• Immediately withdraw the January 18, 2025 ‘flawed’ circular: Order its unconditional withdrawal, which the NCPA described as oppressive and legally unsustainable.
• Halt adversarial litigation and ensure uniformity: Conduct an immediate litigation audit and, where appropriate, withdraw appeals against settled High Court judgments to prevent procedural discrimination against retirees of exempted establishments.
• Waive punitive interest and expedite claims: Accept eligible joint options for higher pension without punitive interest arising solely from EPFO’s administrative delays, and set up a time-bound mechanism to settle claims.

The NCPA said elderly retirees surviving on monthly pensions of ₹2,000 to ₹5,000 could face compounding interest penalties of up to ₹40,000 per month because of administrative delays.

The association cited that “denying or truncating PoHW through restrictive circulars directly violates Article 14 (Equal Protection), Article 21 (Dignified Life), Article 300A (Right to Property) and Articles 141 & 144 (Binding Supreme Court Mandates).”

Sheetal Goel is a Content Producer at Livemint, where she covers corporate developments, personal finance, business trends, markets, and SEBI-related updates. She focuses on simplifying complex financial concepts and presenting them in a clear, reader-friendly manner, thereby helping audiences better understand investment trends, personal finance, and market developments. Her writing focuses on making finance more accessible to everyday readers while maintaining clarity, accuracy, and relevance. <br><br> She holds a degree in Economics (Hons.) along with an MBA in Finance, which has helped her develop a strong foundation in financial analysis, market understanding, and business reporting. Before joining journalism, she worked with finance and broking firms, where she closely followed market developments, investment strategies, and evolving industry trends. This practical exposure strengthened her understanding of financial markets. She has also written content across multiple formats and platforms, including YouTube, LinkedIn, and Instagram. <br><br> Over time, she has developed expertise in covering market-linked stories, investor-focused topics, and regulatory updates in a simplified yet informative style. She also enjoys reading and listening to Hindi poetry, reflecting her appreciation for literature and creative expression beyond the world of markets and numbers.

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