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Update: Supreme Court judgement on higher pension based on EPS-95

February 22, 2023

Latest update on the impact that the Supreme Court judgement on higher pension based on EPS-95 will have on employees and employers.
Health and Benefits|Retirement|Ukupne nagrade |Benessere integrato

We are issuing another short addendum to our previous note on the Supreme Court Judgment of November 4, 2022, that paved the way for certain employees to exercise the right to higher pension under the aegis of the Employees’ Pension Scheme, 1995 (EPS).

The EPFO has issued a circular on 20 February 2023, where they have instructed field officers to prepare for the implementation of the directions of the Supreme Court Judgement. In particular, this latest circular provides the opportunity to apply for higher EPS pension to the following category of employees:

  • Employees who were members of EPS prior to 1 September 2014 and continued to be members after this date,
  • Employees / employers who had contributed PF on full salary (rather than restricting it to the threshold)
  • Employees who had not exercised this joint option under the Proviso to Paragraph 11(3) earlier.

With the issuance of this circular, it is now clear that the option is available to a vast majority of the workforce.

We understand that the EPFO would make available the joint option form, and the application would need to be digitally logged and verified by the employer.

The EPFO will issue a subsequent circular setting out the “method of deposit and that of computation of pension” as well as further steps on the process to apply for this option. The latest circular provides important information about the eligibility of various categories of employees and the manner of application, including key information that will be required to support the application. Moreover, in the last couple of weeks, we have come across several employers, including large Public Sector companies and other large, reputed firms, who are starting to spread awareness among their workforce regarding this option.

In view of this latest circular and above emerging practice, WTW strongly recommends that employers assess the financial implications of this option and prepare for its implementation. This includes conducting employee awareness sessions, drafting employee communication material and providing a pension calculator to enable employees to make an informed choice. WTW and its team of actuaries and pension experts, are available and will be happy to support you as required.

We will continue to monitor this space and share latest updates when available. Please feel free to reach out to your WTW consultant or write to for any questions or guidance around understanding the impact of this judgement.

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