The Employees Provident Fund Organization issues clarification related to processing of pension on higher wages

The EPFO vide File No. Pension/V1/PoHW/2024-25/efile-951977/09 dated January 18, 2025, issued the following clarifications:

1. The pro rata calculation of pension is equitable, and it treats both categories of pensioners i.e. pensioners with wage ceiling and pensioners with higher wages on equal footing.
2. The eligibility for PoHW should be determined on the basis of extant trust rules of the exempted establishment.
3. The eligibility of PoHW  is crystallized only when the dues (with interest) have been received in the pension fund.
4. The revision of wages with retrospective effect was not deliberate or willful default on the part of the employers. Therefore, such wages should be accounted for against the respective months for which arrears were meant. In such cases damages shall not be recovered but interest will be levied.