EPFO rejects over 11 lakh higher pension claims, applicants face uncertainty

New Delhi: The Employees' Provident Fund Organisation (EPFO) has rejected a staggering 11.01 lakh out of 15.24 lakh applications for pension on higher wages, as of July 16, 2025. This high rejection rate, representing over 72 per cent of processed applications, has raised significant concerns among applicants across the country, particularly in regions like Chennai and Puducherry, which saw a very high denial rate.

According to data shared by Minister of State for Labour & Employment Shobha Karandlaje in the Lok Sabha, the EPFO has processed over 98.5% of the total applications received, with 4,00,573 demand letters issued to eligible applicants. Approximately 21,995 applications are still pending review.

Background of the Higher Pension Scheme:

The controversy stems from a 2014 amendment to the Employees' Pension Scheme (EPS), which increased the pensionable salary cap from Rs 6,500 to Rs 15,000 per month. This amendment also allowed employees and employers to contribute 8.33 per cent of their actual salaries (even if exceeding the cap) towards EPS, provided they opted in within a six-month window. Many employees reportedly missed this deadline due to various reasons, including a lack of awareness.

A landmark Supreme Court judgment on November 4, 2022, provided a window of opportunity for eligible members who missed the previous deadlines to apply for a higher pension. The court clarified that employees who were EPS members as of September 1, 2014, and either continued working or retired thereafter, were eligible to opt for a higher pension based on their actual salaries, provided they and their employers had contributed to higher wages earlier.

Common Reasons for Rejection:

While the government has not yet provided a detailed official explanation for the high number of rejections, general reasons for EPF claim denials, as observed in various financial advisories, often include:

• Inaccurate or Incomplete KYC/Personal Details: Mismatches in information like name, date of birth, or father's name between claim forms, Aadhaar, PAN, and EPFO records.
• Mismatched or Incorrect Bank Details: Discrepancies in account number, IFSC code, or if the bank account is not solely in the applicant's name (unless a joint account with a spouse is permitted).
• Non-linking of UAN with Aadhaar: Mandatory linking and verification of the Universal Account Number (UAN) with Aadhaar.
• Unclear Signature: Signatures do not match those on EPFO records.
• Insufficient or Incorrect Service Record: Gaps in employment history or missing documents like Annexure K.
• Non-compliance with Withdrawal Rules: Not meeting specific EPFO rules regarding minimum service duration or eligibility for the claimed withdrawal type.
• Pending Employer Contribution or Non-Approval by Employers: If the employer's contributions are not up to date, or if previous employers have not approved the higher pension application. The approval of the joint option by all employers is a prerequisite.
• Incorrect EPS Status: Misreporting EPS membership status on Form 11.
• Technical Errors: Occasional server-side glitches or human errors during online submission.

Applicants whose claims were rejected are generally given an opportunity to make corrections or provide additional documents. However, the lack of specific reasons for the high number of rejections in this particular drive leaves many pensioners uncertain about their future entitlements. The government has not indicated a final timeline for addressing the remaining pending applications.