EPFO Higher Pension: There has been a significant development concerning increased pensions for members of the Employees’ Provident Fund Organization (EPFO). The government has disclosed to Parliament that over 15.24 lakh claims have been submitted for higher pensions based on higher salaries. As of August 5, 2026, only 11,595 of these claims are pending.

In a written response in the Lok Sabha, Minister of State for Labour and Employment Shobha Karandlaje presented the following figures, stating that following the landmark decision of the Supreme Court on November 4, 2022, the process of higher pensions is progressing swiftly.

Over 1.49 lakh Pension Payment Orders (PPOs) have been issued:

1,49,806 Pension Payment Orders (PPOs) have been issued for retired employees based on 15.24 lakh applications received by EPFO. The Higher Pension Option enables eligible members to contribute towards their pension based on their actual basic pay instead of the pensionable salary limit. This allows for a higher retirement pension, though higher contributions are required during the working period.

Details on EPS Pensioners and Fund Distribution:

– Total Pensioners: 85.85 lakh pensioners are registered under EPS as of March 31, 2026.

– Disbursed Amount: A total of Rs 15,819.28 crore has been distributed as pension under the scheme until this period.

– New Framework: EPS 2026 has replaced EPS 1995 as per the government’s announcement.

Minimum Pension and Government Contribution Breakdown:

– The government ensures a minimum monthly pension of Rs 1,000 to EPS eligible pensioners through budgetary support.

– The government contributes 1.16% of the applicable wage ceiling to the pension fund, while employers contribute 8.33% of wages to the pension fund, which is reviewed annually.

Updates on EPF Withdrawal Rules:

– Waiting Period: A 12-month waiting period is in place for premature final EPF settlement and a 36-month waiting period for withdrawal benefits from EPS.

– Simplified Partial Withdrawals: Partial withdrawal processes have been simplified and categorized into three groups, including mandatory requirements, housing needs, and special circumstances.

– Advance Withdrawal up to 75%: Members can withdraw up to 75% of their EPF balance, covering expenses like unemployment, medical emergencies, education, and home construction.

– Unreasonable Withdrawal: Under special circumstances, members can withdraw up to 75% of their total funds in advance twice a year without providing a reason.

Implications for EPFO Members:

– Opting for a higher pension means that a part of your take-home salary during your employment will be directed towards the pension fund, resulting in a higher and fixed monthly pension post-retirement.

– The new withdrawal rules make emergency fund withdrawals before retirement more accessible and transparent for general subscribers, albeit a stipulated waiting period must be observed for full settlement.