The Supreme Court verdict on EPS-95 (November 2024) allowed eligible pensioners to get their pension recalculated on actual higher salary instead of the ₹15,000 cap. This opened the door for lakhs of retirees to receive higher monthly pensions + arrears.
In early 2026 the process is moving at full speed. EPFO has already started issuing fresh calculation sheets and crediting higher pensions and arrears to many accounts. For thousands of families this is turning into real monthly financial relief.
What the Supreme Court Actually Allowed
The Court permitted higher pension based on actual salary contributions made before September 2014 (when the cap was ₹6,500 and later ₹15,000).
It did not allow 8.33% employer contribution on the full salary — only on the capped amount.
Who Is Eligible for Higher Pension & Arrears
You qualify if:
- You were an EPF member before 1 September 2014
- Your employer contributed on salary higher than the cap at that time
- You (or your employer) submitted the joint higher pension option form correctly
Existing pensioners who meet these conditions are getting fresh re-calculation.
How Arrears Are Being Calculated
EPFO is re-working the pension from the date you became eligible (retirement date or date of option exercise).
Arrears = difference between old pension and new higher pension × number of months + simple interest.
When Pensioners Are Getting the Money
Many eligible members already received revised pension orders and arrears in late 2025 and early 2026.
The process is phased — priority given to older pensioners and those who applied early.
Typical Arrears & Pension Increase (Illustrative)
| Last Drawn Avg. Salary (pre-cap) | Earlier Monthly Pension | New Monthly Pension (approx.) | Possible Arrears (5–10 yrs) |
|---|---|---|---|
| ₹25,000 | ₹7,500 | ₹18,000–₹22,000 | ₹6–12 lakh |
| ₹40,000 | ₹7,500 | ₹28,000–₹34,000 | ₹12–20 lakh |
| ₹60,000 | ₹7,500 | ₹42,000–₹48,000 | ₹20–35 lakh |
(Note: Actual figures vary widely depending on service years, exact salary history and date of retirement.)
What If You Haven’t Received Anything Yet?
Many cases are still in process because of huge volume. EPFO is working in batches.
What Pensioners Should Do Right Now
- Log in to EPFO member portal / UMANG app and check passbook / pension status
- Visit regional EPFO office if no update in 3–6 months
- Keep old salary slips, Form 10-D, joint option copy ready
The Supreme Court verdict has unlocked higher EPS pensions and substantial arrears for eligible members. In 2026 thousands are already seeing more money in their bank accounts every month.
Log in to the EPFO portal or visit your regional office today to track your case. Don’t delay — the sooner you follow up, the sooner you can receive your rightful higher pension and arrears!