Out of the 7.8 million pensioners, the EPFO has received roughly 1.75 million applications from those who wish to earn a larger pension based on their real wages.
According to a senior government official, the Employees’ Provident Fund Organization (EPFO) is preparing to expedite the pension on increased salaries process, which would allow individuals who qualify to begin receiving their updated pensions by the end of this year.
Who gets first preference?
In order to expedite the process, the EPFO will initially concentrate on handling larger pension claims for state-run businesses and unexempted entities, where money has already been received.
What’s happening?
Out of the 7.8 million pensioners, the EPFO has received roughly 1.75 million applications from those who wish to earn a larger pension based on their real wages. The current system, however, finds it difficult to handle every request on time.
The EPFO intends to designate ten to fifteen regional offices to exclusively handle these applications in order to address this. In order to expedite the process, it will also bring in more personnel, such as legal professionals and companies that have been approved by the Comptroller and Auditor General.
In the meantime, over 102,000 applications were returned to employers because they were incomplete. Additionally, 368,000 applicants received demand letters from the EPFO requesting payment of the additional sum required for the higher pension. This sum has been paid thus far by 47,000 active employees and more than 100,000 retired workers.
About 19,000 pension orders are in the works, while more than 34,500 pensioners have already received their new pension orders. The Ministry of Labor and Employment hasn’t disclosed the precise number of applications that have been turned down, though. Since it is estimated that more than 500,000 applications were denied, companies and employees are pleading with EPFO to examine them in order to ensure that no qualified individual is overlooked.
Why this move?
This action follows the Supreme Court’s November 2022 decision that let workers to choose a larger pension based on their entire wage. Workers and their employers who match the requirements for a higher pension were encouraged to submit joint applications to the EPFO in February 2023.
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