EPFO New Update – There has been a major update from the Employees Provident Fund Organisation, or EPFO, that could impact lakhs of employees and pensioners. More than twenty two thousand people have just received approval for a higher pension under the Employees Pension Scheme. But at the same time, about one point six five lakh members will have to make extra contributions to qualify. This change follows a Supreme Court order that allows pensions to be calculated on the actual salary instead of the earlier limit set under the scheme. Let us break down what this means, who is eligible, how much you might need to pay, and how to check if your name is on the approved list.
What Is the Higher Pension Scheme under EPFO
The higher pension scheme under EPFO basically allows members to get their pension based on their full salary rather than the capped amount of fifteen thousand rupees per month. Under the old rule, even if you earned more, your pension was still calculated on the fifteen thousand limit. Now, if you qualify and make the required additional contributions, your pension can go up quite a bit.
This new option was made possible after the Supreme Court clarified in its order that employees who contributed on actual wages should get the benefit of a higher pension. And that is why EPFO is now reviewing applications and approving cases accordingly.
Also Read:
8th Pay Commission Update: Why Central Employees Might Miss the Revised Salary in January 2026
Who Is Eligible for Higher Pension
There are some clear conditions you must meet if you want to qualify for the higher pension:
You must have been a member of the EPF and EPS schemes before first September twenty fourteen
You should have contributed to the EPF on your full salary and not just on the fifteen thousand limit
You should not have opted out of the pension scheme during your service
You must not have withdrawn your full pension fund at the time of retirement
You must have applied through the EPFO portal before the last deadline
Also, your employer needs to agree and submit a joint option form along with you. If anything is incomplete or not verified, your application may be kept pending or rejected.
How Much Extra Do You Need to Pay
If your application is accepted, you may be asked to deposit the amount that should have been paid earlier as part of the eight point three three percent contribution on your full salary. This amount varies depending on your salary and number of service years. It could be anywhere from two lakhs to twenty five lakhs in total.
The EPFO will also charge interest on these pending contributions. Once your contribution records are verified and your extra payments are made, your pension will be recalculated. Payments can be made through the EPFO payment gateway or in some cases via your employer.
How to Check If You Are Approved
EPFO is releasing the list of approved members region-wise. These lists are shared through the websites of different EPFO regional offices.
Also Read:
Big Relief for Home Loan Borrowers! RBI’s New Rules Bring Good News RBI Rule For Home Loan
Here is how you can check if you are approved:
Go to the official website of your regional EPFO office
Look for notices or announcements related to the higher pension list
Download the PDF file that contains the approved applicants
Search for your name or UAN or PPO number in the list
The list will also show the status of your application, such as approved, pending, or rejected, along with reasons if applicable.
Why So Many Members Have to Pay Extra
About one point six five lakh applicants have been asked to pay extra because they were contributing only on the wage ceiling and not on their full salary. Since the pension is now based on actual salary, these people need to make up for the missing contribution before they can get higher pension benefits.
Some common reasons include:
No joint option submitted earlier
No proof of actual salary-based contribution
Employer records not matching with EPFO data
Pending interest on backdated contributions
Until this payment is made, EPFO will not process the final pension calculation. Notices are being sent to the affected members, and many have raised complaints or asked for clarifications through the grievance redressal system.
How Pension Calculation Works Now
With this update, pension is now being calculated on your full average salary instead of the old fixed limit. Here is a quick idea of how much difference it can make:
If your average salary was fifteen thousand rupees, and you worked for twenty five years, your old and new pension is almost the same
But if your salary was thirty thousand, your pension can now double
At higher salaries like seventy five thousand or one lakh, your monthly pension can go up to forty six thousand or even sixty two thousand rupees
This means a significant financial upgrade during your retirement, but only if all contributions and formalities are complete.
What to Do If Your Application Is Still Pending or Rejected
If your name is not on the approved list or your application is shown as pending or rejected, do not worry. You can still follow these steps:
Visit your EPFO office with all salary and service documents
Raise a complaint on the EPFO grievance portal
Talk to your employer to validate your contribution records
Keep your Form 3A and salary slips ready
Apply for reconsideration if you believe there was an error
The EPFO higher pension process is a great opportunity to boost your retirement income, but it requires patience, paperwork, and financial readiness. Keep an eye on official updates, verify your contribution history, and act on EPFO notices without delay.