New Delhi: The Centre has told the Rajya Sabha that the November 2022 Supreme Court judgment on higher pension under the Employees’ Pension Scheme (EPS), 1995, has been implemented uniformly for employees of both exempted and unexempted establishments.

The issue of uniform implementation of higher pension under the EPS scheme came up in the Rajya Sabha on August 6, 2026, when BJP MP Ajeet Madhavrao Gopchade asked whether the government had considered a July 9, 2026, ruling of the Madras High Court’s Madurai Bench along with earlier Supreme Court judgments on the matter.

The Madras High Court ruling had reaffirmed the rights of employees of exempted establishments to opt for higher pension based on their actual wages.

Gopchade also referred to the Supreme Court’s 2022 judgment in the Sunil Kumar B. & Others case, in which the apex court upheld the right of eligible employees to opt for higher pension by contributing to the EPS on higher or uncapped wages.

In its response, the government said it had taken note of the July 9 judgment concerning higher pension under EPS-1995 for employees of exempted establishments. It also said it had examined the implementation of the Supreme Court’s order in a time-bound manner.

The government said an online facility had been provided for EPS subscribers seeking higher pension, while applications for validation of joint options were processed in accordance with the applicable provisions.

Clarifying its position, the Centre said the November 2022 higher pension judgment had been implemented uniformly for all exempted and unexempted establishments.

What is higher EPS pension?

The higher pension option allows eligible EPS subscribers to contribute based on their actual basic wages and dearness allowance instead of being restricted to the standard pensionable wage ceiling of Rs 15,000.

Under the option, employees can make higher contributions towards the pension fund, which can result in a higher pension after retirement. Pension is calculated based on the average pensionable salary during the last 60 months of service.

The Employees’ Pension Scheme provides pension benefits on superannuation, early retirement and permanent disability, besides family pension benefits in the event of a member’s death.

Under the scheme, employers contribute 8.33 per cent of an employee’s basic pay towards EPS, while the Centre contributes 1.16 per cent, subject to the applicable wage ceiling.

Employees generally need at least 10 years of eligible service to receive a pension under the scheme after retirement at 58.

Exempted vs unexempted establishments

An EPF-exempted establishment is one that operates a private provident fund trust and has obtained exemption under Section 17 of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952.

Unexempted establishments, meanwhile, are those without such an exemption and are required to follow the EPF regulations administered by the Employees’ Provident Fund Organisation (EPFO).