EPFO underpaid EPS pension by ₹1,350; consumer commission orders refund with interest
The Employees’ Provident Fund Organisation (EPFO) has been directed by a consumer commission to refund ₹1,350 along with interest and compensation after it wrongly calculated an employee’s EPS withdrawal benefit, resulting in a lower payout than what he was entitled to receive.
The District Consumer Disputes Redressal Commission, Kangra at Dharamshala, held the EPFO guilty of deficiency in service after finding that it applied the wrong calculation factor while processing the complainant’s Employees’ Pension Scheme (EPS) withdrawal claim, Economic Times reported.
What was the mistake?
While the retirement fund body correctly based the withdrawal benefit on the statutory wage ceiling of ₹15,000 per month, they made a mistake in applying the formula. Instead of using the 0.94 factor that applies to an employee with 11 months and 12 days of service, it used the 0.85 factor meant for a 10-month service period, which caused the miscalculation of withdrawal benefits.
The error led to a short payment of ₹1,350, even though the employee was entitled to ₹14,100 had the correct factor been applied.
What happened to the employee’s EPS money?
The case involved a Himachal Pradesh resident who worked as a clerk through an outsourcing agency at DAV Public School between April 4, 2024, and March 15, 2025. Throughout his employment, provident fund and pension contributions were regularly deducted from his monthly salary and deposited with EPFO.
After leaving the job, he applied to withdraw his EPS benefits. While his EPF passbook accessed through the official EPFO portal showed a pension balance of ₹14,230, EPFO credited only ₹12,750 to his bank account.
After repeated complaints to the EPFO failed to resolve the discrepancy, he approached the District Consumer Disputes Redressal Commission, Kangra, seeking relief. The complainant also resides in Tehsil Baijnath of District Kangra.
Complainant gets refund and compensation
The case was brought to the consumer commission on July 22, 2025 and the final hearing was on June 25, 2026. The judgement was pronounced on July 1, 2026.
This error prompted the consumer commission to order EPFO to pay the balance amount with an interest of 9% per annum from the date of the short payment until actual realization.
The retirement fund body is also directed to pay ₹1,000 as compensation for mental agony and harassment along with ₹2,500 for litigation costs.
How to file a grievance with EPFO?
A person can lodge their grievance online directly through the official dedicated EPFO grievance portal (https://epfigms.gov.in) by using their UAN/Establishment/PPO number. Follow the given steps to proceed:
