Arbitrary and opaque: On the Employees’ Pension Scheme 2026

EPFO has tweaked pension scheme rules without wide consultations (परामर्श, विचार-विमर्श)

The manner in which the Employees’ Provident Fund Organisation (EPFO)’s Central Board of Trustees (CBT) (a statutory body constituted by the Central Government under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, to administer the EPF, EPS, and EDLI schemes and oversee their funds, operations, and investments) approved the Employees’ Pension Scheme (EPS) 2026, on March 2, replacing the EPS 1995 scheme, has raised serious transparency (पारदर्शिता, स्पष्टता) concerns. This affects approximately 5.4 crore contributing members and 82 lakh pensioners. Although the EPS and the Employees’ Provident Fund (कर्मचारी भविष्य निधि) and Employees’ Deposit-Linked Insurance Schemes (कर्मचारी जमा-संबद्ध बीमा योजना) were designed (योजना बनाना, तैयार करना) as a corollary to the Code on Social Security, 2020 (सामाजिक सुरक्षा संहिता 2020) — which was abruptly (अचानक, आकस्मिक रूप से) notified in November 2025 along with three other Codes — neither the government nor the Labour Ministry (श्रम मंत्रालय) had, until now (अब तक, अभी तक), given any hint (संकेत, इशारा) of the new schemes. The stakeholders (हितधारक) were not consulted by the authorities (प्राधिकारी, अधिकारी). More than any other scheme, the EPS 1995, has over the past decade (a period of ten years; a ten-year period), dominated headlines due to litigation (मुकदमेबाजी, न्यायिक कार्यवाही) in various courts, including the Supreme Court of India. Over the past 12 years, certain features (a distinctive attribute or aspect of something; characteristic, attribute, aspect, trait) of the scheme were altered, to the detriment (harm, damage, injury, disadvantage) of employees. For instance (as an example; for example), coverage of the Pension Scheme was limited (restrict, constrain, confine, bound) to those earning up to ₹15,000 a month, instead of offering universal coverage (the inclusion of all individuals in a particular scheme or policy, without discrimination or exclusion; comprehensive inclusion, total coverage) as originally intended (planned, meant, proposed, designed). The pensionable salary calculation changed from the average pay in the last 12 months to 60 months, substantially (to a great extent; significantly, considerably, greatly, largely) reducing the amount of eligible pension. The unrestricted (not limited or restricted; unlimited, unconstrained) option for pension on a higher pension was limited to those who had exercised the option within a year of the modified scheme that came into force on September 1, 2014. With the Supreme Court’s intervention (involvement, intercession, interference, mediation) in 2022, the higher pension option was extended to post-2014 retirees (pensioner, retired person, senior citizen, former employee) as a special case (an instance of a particular situation, or a legal action; instance, situation, occurrence, context). Unfortunately, pre-2014 retirees were left in the lurch as the unrealistic (impractical, unreasonable, unfeasible, illogical) conditions set by the PF body ((referring to) the Employees’ Provident Fund Organisation (EPFO), which manages provident funds for employees) made most of them ineligible for higher pension.

In the new Pension Scheme approved by the CBT, the option provision (a specific legal clause within a pension scheme that allows employees and employers to jointly choose to contribute to the pension fund based on actual salaries rather than the restricted statutory wage ceiling) has been removed as it is considered ‘obsolete (no longer used, or out of date; outdated, outmoded, antiquated, archaic)’ for reflecting (indicate, reveal, demonstrate, show, manifest) a narrow (limited in extent, amount, or scope; restricted, limited, constrained, confined) legal interpretation (the process of determining the meaning of laws or legal documents; judicial construction, legal analysis, statutory interpretation, judicial understanding). Moreover (besides, furthermore, in addition, additionally), those hoping for an upward revision (the act of changing something (like a financial limit or estimate) to a higher figure; increase, raise, enhancement, augmentation) of the ₹15,000 PF contribution ceiling (an upper limit, typically one set on prices, wages, or expenditure; upper limit, maximum, cap, limit) are disappointed (let down, dishearten, sadden, dismay), as no such indication has been given so far (up to this time; until now, to date, thus far, up to the present). Both the wage ceiling (the maximum limit of salary up to which mandatory contributions to schemes like EPF are calculated; salary cap, maximum wage limit, income threshold, pay limit) and the minimum pension of ₹1,000 were fixed over 11 years ago. The EPFO’s overall approach seems to be aimed at reducing what authorities describe as the burden (a heavy load or a severe responsibility or difficulty; responsibility, obligation, liability) of pension commitment (the financial obligation or responsibility of an organization to pay pensions to its retirees; retirement obligation, pension liability). With greater government funding (financial assistance or capital provided by the state or central government; public subsidization, government financial backing) and higher contributions (a payment made to a common fund or collection, such as a provident fund; payment, input) from employers and willing (ready, eager, or prepared to do something; agreeable, ready, prepared, disposed) employees, the EPFO can well meet (fulfill, satisfy, answer, address) pension challenges. A positive mindset along with (in addition to someone or something else; together with, accompanied by, besides, alongside) empathy (the ability to understand and share the feelings of another; compassion, sympathy, understanding, sensitivity) for pensioners and contributors is what is needed from the Union government and EPFO. A mere (just, only, bare, simple) change of laws, regulations (rule, directive, guideline, mandate) and procedures will not deliver the results desired by crores of members and lakhs of pensioners.

Courtesy: The Hindu

Important Word List With Meaning

1.arbitrary (adjective)

Hindi Meaning - मनमाना, स्वेच्छाचारी
English Meaning - based on random choice or personal whim, rather than any reason or system; irrational, capricious, discretionary, illogical.

2.opaque (adjective)

Hindi Meaning - अपारदर्शी, अस्पष्ट
English Meaning - lacking transparency; unclear, non-transparent, obscure, cryptic, unfathomable, mysterious, doubtful.

3.consultation (noun)

Hindi Meaning - परामर्श, विचार-विमर्श
English Meaning - the action or process of formally consulting or discussing; discussion, deliberation, dialogue, engagement.

4.design (verb)

Hindi Meaning - योजना बनाना, तैयार करना
English Meaning - plan, formulate, devise, create.

5.litigation (noun)

Hindi Meaning - मुकदमेबाजी, न्यायिक कार्यवाही
English Meaning - legal proceedings, lawsuit, legal action, court case.

6.abruptly (adverb)

Hindi Meaning - अचानक, आकस्मिक रूप से
English Meaning - suddenly, unexpectedly, hastily, precipitously.

7.Labour Ministry (noun)

Hindi Meaning - श्रम मंत्रालय
English Meaning - the Ministry of Labour & Employment, Government of India, a central government ministry responsible for protecting and safeguarding the interests of workers, promoting their welfare, providing social security, and formulating labor policies.

8.until now (phrase)

Hindi Meaning - अब तक, अभी तक
English Meaning - up to the present time; hitherto, previously, so far, to date.

9.hint (noun)

Hindi Meaning - संकेत, इशारा
English Meaning - a slight or indirect indication or suggestion; indication, clue, suggestion, intimation.

10.stakeholder (noun)

Hindi Meaning - हितधारक
English Meaning - a person with an interest or concern in something, especially a business or policy; interested party, participant, investor, associate.

11.transparency (noun)

Hindi Meaning - पारदर्शिता, स्पष्टता
English Meaning - openness, clarity, straightforwardness, accountability.

12.authorities (noun)

Hindi Meaning - प्राधिकारी, अधिकारी
English Meaning - officials, administration, bureaucrats, regulators, policymakers.

13.Code on Social Security, 2020 (noun)

Hindi Meaning - सामाजिक सुरक्षा संहिता 2020
English Meaning - a legislative act by the Government of India that amalgamates, simplifies, and rationalizes existing central labor laws relating to social security to extend coverage to all employees and workers in both organized and unorganized sectors.

14.Employees’ Provident Fund (noun)

Hindi Meaning - कर्मचारी भविष्य निधि
English Meaning - a government-mandated retirement savings scheme under the EPF Act, 1952, where both employees and employers contribute a portion of the employee’s salary to build a retirement corpus managed by the EPFO.

15.Employees’ Deposit-Linked Insurance Scheme (noun)

Hindi Meaning - कर्मचारी जमा-संबद्ध बीमा योजना
English Meaning - an insurance scheme operated by the EPFO that provides life insurance coverage to private sector employees who are members of the Employees’ Provident Fund, ensuring financial protection for their beneficiaries.

16.decade (noun)

English Meaning - a period of ten years; a ten-year period.

17.due to (phrase)

English Meaning - because of, owing to, on account of, as a result of.

18.corollary (noun)

English Meaning - outcome, consequence, result, repercussion.

19.Employees’ Pension Scheme (EPS) 2026 (noun)

English Meaning - a newly approved pension scheme by the Central Board of Trustees (CBT) under the Code on Social Security, 2020, intended to replace the EPS 1995 scheme and administer pension benefits for employees in the organized sector.

20.Employees’ Pension Scheme (EPS) 1995 (noun)

English Meaning - a statutory social security scheme launched by the Government of India under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, administered by the EPFO to provide post-retirement, disability, and family pension benefits to organized sector workers.

21.Difference between EPS 1995 and EPS 2026 (phrase)

English Meaning - while EPS 1995 was governed by the EPF & MP Act, 1952, and established the foundational structure for organized sector pensions (including specific option clauses for higher pensions), EPS 2026 aligns with the modernized Code on Social Security, 2020. EPS 2026 replaces the 1995 scheme to streamline administration but has faced criticism for removing older provisions deemed “obsolete,” thereby restricting employee options in an apparent bid to reduce the government’s long-term pension funding burden.

22.Employees’ Provident Fund Organisation (EPFO) (noun)

English Meaning - a statutory body under the Ministry of Labour and Employment, Government of India, responsible for the regulation and management of provident funds, pension schemes, and insurance schemes for the organized sector workforce in India.

23.tweak (verb)

English Meaning - modify, adjust, amend, alter.

24.wide (adjective)

English Meaning - comprehensive, extensive, broad, far-reaching.

25.Central Board of Trustees (CBT) (noun)

English Meaning - a statutory body constituted by the Central Government under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, to administer the EPF, EPS, and EDLI schemes and oversee their funds, operations, and investments.

26.raise concerns (phrase)

English Meaning - to express anxiety, worry, or objections about a particular issue; express apprehension, voice doubts, highlight worries, provoke fears.

27.feature (noun)

English Meaning - a distinctive attribute or aspect of something; characteristic, attribute, aspect, trait.

28.detriment (noun)

English Meaning - harm, damage, injury, disadvantage.

29.for instance (phrase)

English Meaning - as an example; for example.

30.coverage (noun)

English Meaning - the extent of protection or financial benefits provided to an individual by an insurance policy or social security scheme against specific risks; protection, inclusion, scope, indemnity.

31.limit (verb)

English Meaning - restrict, constrain, confine, bound.

32.up to (phrase)

English Meaning - as far as a certain limit or point; up to the maximum of, reaching, equaling, no more than.

33.universal coverage (noun)

English Meaning - the inclusion of all individuals in a particular scheme or policy, without discrimination or exclusion; comprehensive inclusion, total coverage.

34.intended (adjective)

English Meaning - planned, meant, proposed, designed.

35.substantially (adverb)

English Meaning - to a great extent; significantly, considerably, greatly, largely.

36.unrestricted (adjective)

English Meaning - not limited or restricted; unlimited, unconstrained.

37.exercise (verb)

English Meaning - utilize, employ, apply, use.

38.come into force (phrase)

English Meaning - (of a law, rule, or system) to begin to apply or be valid; become effective, take effect, become operative, be implemented.

39.intervention (noun)

English Meaning - involvement, intercession, interference, mediation.

40.retiree (noun)

English Meaning - pensioner, retired person, senior citizen, former employee.

41.case (noun)

English Meaning - an instance of a particular situation, or a legal action; instance, situation, occurrence, context.

42.leave in the lurch (phrase)

English Meaning - to abandon or leave someone in a difficult situation without assistance; abandon, desert, let down, forsake.

43.unrealistic (adjective)

English Meaning - impractical, unreasonable, unfeasible, illogical.

44.condition (noun)

English Meaning - a requirement or stipulation that must be fulfilled; requirement, stipulation, prerequisite, criterion.

45.set (verb)

English Meaning - establish, impose, define, formulate.

46.PF body (noun)

English Meaning - (referring to) the Employees’ Provident Fund Organisation (EPFO), which manages provident funds for employees.

47.make most of (phrase)

English Meaning - to cause the majority or the largest part of a group to be in a certain state; render the majority, cause the bulk of, turn the greater part of, affect nearly all.

48.provision (noun)

English Meaning - a condition or requirement in a legal document or scheme; clause, stipulation, condition, requirement.

49.option provision (noun)

English Meaning - a specific legal clause within a pension scheme that allows employees and employers to jointly choose to contribute to the pension fund based on actual salaries rather than the restricted statutory wage ceiling.

50.obsolete (adjective)

English Meaning - no longer used, or out of date; outdated, outmoded, antiquated, archaic.

51.reflect (verb)

English Meaning - indicate, reveal, demonstrate, show, manifest.

52.narrow (adjective)

English Meaning - limited in extent, amount, or scope; restricted, limited, constrained, confined.

53.legal interpretation (noun)

English Meaning - the process of determining the meaning of laws or legal documents; judicial construction, legal analysis, statutory interpretation, judicial understanding.

54.moreover (adverb)

English Meaning - besides, furthermore, in addition, additionally.

55.upward revision (noun)

English Meaning - the act of changing something (like a financial limit or estimate) to a higher figure; increase, raise, enhancement, augmentation.

56.ceiling (noun)

English Meaning - an upper limit, typically one set on prices, wages, or expenditure; upper limit, maximum, cap, limit.

57.disappoint (verb)

English Meaning - let down, dishearten, sadden, dismay.

58.so far (phrase)

English Meaning - up to this time; until now, to date, thus far, up to the present.

59.wage ceiling (noun)

English Meaning - the maximum limit of salary up to which mandatory contributions to schemes like EPF are calculated; salary cap, maximum wage limit, income threshold, pay limit.

60.burden (noun)

English Meaning - a heavy load or a severe responsibility or difficulty; responsibility, obligation, liability.

61.pension commitment (noun)

English Meaning - the financial obligation or responsibility of an organization to pay pensions to its retirees; retirement obligation, pension liability.

62.commitment (noun)

English Meaning - a pledge, promise, or financial obligation; obligation, responsibility, pledge, duty.

63.government funding (noun)

English Meaning - financial assistance or capital provided by the state or central government; public subsidization, government financial backing.

64.contribution (noun)

English Meaning - a payment made to a common fund or collection, such as a provident fund; payment, input.

65.willing (adjective)

English Meaning - ready, eager, or prepared to do something; agreeable, ready, prepared, disposed.

66.meet (verb)

English Meaning - fulfill, satisfy, answer, address.

67.challenges (noun)

English Meaning - difficulties, hurdles, obstacles.