News Desk
08 October 2025, 10:12 AM IST
Kerala High Court ensures higher EPS pension for post-2014 retirees despite procedural remittance issues.
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The Kerala High Court has clarified that employees who retired after September 1, 2014, cannot be denied a higher Employees’ Pension Scheme (EPS) pension if both they and their employers contributed on actual wages above the statutory ceiling—and the contributions were accepted by the Employees’ Provident Fund Organisation (EPFO). Procedural or timing lapses, including bulk or late remittances, cannot override this right.
This ruling impacts employees from a Kerala company who retired between 2020 and 2022. During their working years, these employees opted to contribute to EPS based on their full salaries rather than the capped statutory wage limits of Rs 5,000, Rs 6,500, or Rs 15,000. Both employees and their employer made the contributions, which EPFO accepted, yet they were initially denied a higher pension citing bulk remittance issues.
Why did disputes arise?
The Employees’ Pension Scheme allows pension calculations on a capped wage unless employees choose to contribute on actual salaries. In this case, the employer made some contributions in bulk from April 2004 to October 2006 and again from October 2007 to February 2008, which EPFO claimed did not match month-wise requirements. Earlier court rulings and government instructions led to remittance adjustments, but procedural discrepancies resulted in initial pension denials.
How did the employees challenge EPFO?
The employees filed multiple writ petitions in the Kerala High Court, citing records and communications proving that higher contributions had been made and accepted by EPFO. Legal experts explained that these rejections were based solely on technical grounds, such as bulk payments and apportionment delays, rather than the substance of contributions.
What did the High Court decide finally?
The Court ruled that substantive compliance must prevail over technicalities. Since contributions were indeed made on actual wages and accepted by EPFO, the pension cannot be denied due to administrative or procedural lapses. EPFO has now been directed to disburse higher pensions based on month-wise breakup of employer contributions within three months. The judgment allows EPFO to initiate proceedings against the employer if needed but safeguards employee pension rights.
Why is this ruling important for future retirees?
Employees nearing retirement or those already retired after September 1, 2014, now have stronger legal grounds to claim higher EPS pensions if contributions were made on actual wages. The case underscores that higher-pension rights cannot be frustrated by procedural irregularities when substantive compliance is proven.
What should affected employees do now?
Retirees should check their EPF and EPS records, gather salary slips, contribution proofs, and employer communications. Using the Kerala High Court judgment, they can request EPFO to recalculate pensions. Legal or PF consultancy support may be needed in some cases.
How does this affect employers?
Employers must ensure contributions on actual wages are properly remitted, but employee pensions cannot suffer due to employer lapses. The ruling confirms that technical objections cannot override employees’ substantive rights to higher pension benefits.
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