Shine Mohan
28 September 2025, 09:38 AM IST
Himachal Pradesh pensioners receive reduced PF pensions as EPFO applies undisclosed formula.
Representational image
New Delhi:The EPFO used an undisclosed formula, which results in an even lower amount, to bag a stay on the Himachal Pradesh High Court Single Bench’s order that declared the “pro-rata” method, which remarkably reduces PF pensions, as unjust. The petitioners said EPFO obtained the stay order from the division bench by increasing the pension amount by less than what was due. It is also noteworthy that EPFO has not stated that the pro-rata method has been avoided in the pension calculation.
The single bench’s order was given on September 9 in a contempt petition filed by retirees from Himachal Pradesh Power Corporation—Ranjeev Paul, Narbir Thakur and Anil Sharma. The court then ordered appropriate action within 10 days or else contempt proceedings would follow.
The EPFO then approached the High Court’s Division Bench against this, and by stating that the pension amounts of two of the petitioners had been increased, secured a stay on the Single Bench’s order. It is not just the contempt of court proceedings against the EPFO official that were stayed—the stay on the Single Bench’s verdict, which declared the pro-rata method unjust, was both a setback for the pensioners and a relief for the EPFO.
Lead petitioner Ranjeev Paul told Mathrubhumi that the actual amount received was less than deserved and that the fight would continue.
Anil Sharma was entitled to ₹37,560, but received ₹29,752. Sharma’s pension should have increased by ₹10,016 from ₹27,544 but was raised by only ₹2,208. Thakur’s pension, which should have increased from ₹20,812 to ₹26,772 (an increase of ₹5,960), was increased by only ₹2,130 to ₹22,942. Ranjeev Paul’s amount was not revised due to arrears of additional contributions.
Thakur retired on September 30, 2016 and Sharma on December 28, 2017. Since their service after September 1, 2014 was reduced, even with the pro-rata method, their pension should not have decreased. Ranjeev said he would apply under the Right to Information Act to find out which formula EPFO used.
The single bench’s observation that the pro-rata method is unjust inspired pensioners across the country who are fighting legal battles on this issue.
Instead of calculating pension using the average salary of the last 60 months, the pro-rata method considers service before and after September 1, 2014 separately, causing many pensions to be reduced.
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