EPFO Directs Regional Offices to Address High Rejection Rate in Pension Applications
New Delhi, May 28, 2025 – The Employees’ Provident Fund Organisation (EPFO) has raised concerns over the high rejection rate of pension applications under the higher wages option. In a directive issued to all zonal and regional offices, the EPFO emphasized the need for fair and accurate processing of applications to ensure that minor deficiencies do not lead to outright rejection.
The circular, issued by Chandramauli Chakraborty, Addl. Central PF Commissioner (HQ Pension), highlights that many rejections are due to minor documentation errors, which could have been resolved with proper guidance from employers. Additionally, the interpretation of terms like “wages” and procedural ambiguities have further complicated the approval process.
Key points from the directive include:
- Rectification Opportunities: Applicants should be given adequate time and support to address minor deficiencies instead of facing immediate rejection.
- Misinterpretation Issues: Instances were flagged where contributions exceeding the prescribed wage ceiling under the EPS 1995 scheme were erroneously interpreted, leading to rejections.
- Arithmetic Accuracy: Verification processes must ensure consistency between wages and contributions while reflecting the establishment’s salary structure.
The directive also noted the influx of complaints at the Head Office, making it challenging to manage grievances effectively. To address this, EPFO has proposed:
- Audits by specialized teams of Chartered Accountants empaneled under the Comptroller and Auditor General (CAG).
- Deployment of EPFO's internal audit teams to review cases, especially those under litigation.
EPFO has urged regional offices to adhere strictly to the guidelines and ensure that applications are processed transparently and justly. The initiative aims to reduce the administrative burden while safeguarding the rights of pension applicants.
