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  1. Monsoon Session 2026: Govt responds to queries on higher pension under EPS 2026

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Monsoon Session 2026: Govt responds to queries on higher pension under EPS 2026

rajeev kumar

4 min read | Updated on July 20, 2026, 14:23 IST

SUMMARY

On the first day of the Monsoon Session of the Parliament on July 20, 2026, the Union Minister of State for Labour and Employment responded to several queries on Employees' Pension Scheme.

monsoon session 2026 queries on EPS

The Government is providing a minimum pension of ₹1,000 per month to pensioners under the EPS, 1995. | Image: Shutterstock

The Union Minister of State for Labour and Employment, Shobha Karandlaje, on Monday, July 20, 2026, said that the pro-rata basis for calculation of pension is provided in Paragraph 12 of the Employees' Pension Scheme (EPS), 2026, and it is equitable.
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The minister made the above statement in a written response to several queries by member N.K. Premachandran in the Lok Sabha regarding the implementation of pension on higher wages following a high court order, including "whether the EPFO proposes to revise circular to implement the High Court order to calculate pension on high wages without pro-rata and if so the details of action taken thereon?"

Other queries related to higher pension included the following:

  • Whether the Government proposes to implement the High Court Judgment with respect to nullify the circular of Employees' Provident Fund Organisation (EPFO) implementing the pro-rata for calculating the pension on higher wages and if so the details of action taken thereon;

  • Whether the Government proposes to direct the EPFO to implement the said judgement across the country and if so the details thereof;

  • Whether the Government proposes to revise the pension on higher wages wrongly fixed on the basis of pro-rata and if so the details thereof;

  • Whether the Government considered that the EPFO is duty bound to ensure the welfare of the laborers and pensioners and if so the details of action taken thereon; and

What the minister said

Replying to the above, the minister said, "EPFO has taken action to implement the directions contained in the Hon'ble Supreme Court Judgment dated 04.11.2022 in a time-bound manner. An online facility was provided and applications for validation of Joint Options processed in accordance with the applicable provisions."

"Pro-rata basis for calculation of pension is provided in Paragraph 12 of the Employees' Pension Scheme, 2026 and is equitable, treating both categories of pensioners, i.e., pensioners under wage ceiling and those with higher wages, on an equal footing. The Government remains committed to ensuring maximum benefits for workers under the EPS-2026 Scheme while taking into consideration the health of the Fund and the future liabilities thereon," she added.

Action taken on SC order

In response to related queries by member Parshottambhai Rupala, regarding implementation of higher pension benefits under EPS 1995, the minister said, "EPFO has taken action to implement the directions contained in the Hon'ble Supreme Court Judgment dated 04.11.2022 in a time-bound manner. An online facility was provided for submission of applications by eligible pensioners/members for validation of Joint Options.

In response to related queries from member Parshottambhai Rupala regarding the implementation of higher pension benefits under EPS 1995, the minister said: "EPFO has taken action to implement the directions contained in the Hon'ble Supreme Court judgment dated 04.11.2022 in a time-bound manner. An online facility was provided to eligible pensioners and members for the submission of applications for validation of joint options."

"Vide circular dated 18.01.2025, inter-alia, clarification has been issued to facilitate uniform implementation. It was clarified that for the exempted establishments the eligibility for higher pension benefits will be determined on the basis of the extant trust rules of the exempted establishment prevailing before the decision dated 04.11.20222. Further, in case the Trust rules are amended post decision dated 04.11.2022 in Sunil Kumar Case, applications of members of such Trusts may not be considered," she added.

EPF contribution hike

The minister also replied to a query on whether the government is considering budgetary support or restructuring of the pension fund for enhancement of the pension.

"The Government is providing a minimum pension of ₹1,000 per month to pensioners under the EPS, 1995 through budgetary support, which is in addition to the budgetary support of 1.16 per cent of wages provided annually towards EPS to Employees' Provident Fund Organisation (EPFO)," the minister of state said.

"EPS 1995 has been superseded by EPS 2026. The Government is committed to ensuring robust social security coverage to members of EPFO schemes while taking into consideration the sustainability of the Fund and the future liabilities thereon," she added.

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About The Author

rajeev kumar
Rajeev Kumar is a Deputy Editor at Upstox, and covers personal finance stories. In over 11 years as a journalist, he has written over 2,000 articles on topics like income tax, mutual funds, credit cards, insurance, investing, savings, and pension. He has previously worked with organisations like 1% Club, The Financial Express, Zee Business and Hindustan Times.

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