Archive · 25 Jul 2026
EPFO Ordered to Refund Underpaid Pension with Interest
A man who worked as a clerk in Himachal Pradesh found out that the EPFO, which manages pensions, made a mistake when calculating his pension money.
They used the wrong numbers and gave him less money than he should have gotten.
The man complained, and a special court agreed with him.
They told the EPFO to give him the missing ₹1,350 plus extra money for interest and for the trouble he went through.
The EPFO also has to pay for the court costs.
This shows how important it is to double-check calculations to make sure people get the right amount of money they deserve.
The EPFO underpaid an employee's EPS pension by ₹1,350 due to a calculation error.
The error occurred because the wrong calculation factor was applied, resulting in a lower payout.
The employee, a Himachal Pradesh resident, worked as a clerk and had his provident fund and pension contributions deducted regularly.
After repeated complaints to the EPFO failed, the employee approached the District Consumer Disputes Redressal Commission, Kangra.
The consumer commission ordered the EPFO to refund the underpaid amount with 9% interest and pay ₹1,000 as compensation for mental agony and ₹2,500 for litigation costs.
- Who
- A Himachal Pradesh resident who worked as a clerk through an outsourcing agency at DAV Public School
- What
- The EPFO underpaid the employee's EPS pension by ₹1,350 due to a calculation error
- When
- The case was brought to the consumer commission on July 22, 2025, with the final hearing on June 25, 2026, and the judgment pronounced on July 1, 2026
- Where
- District Consumer Disputes Redressal Commission, Kangra at Dharamshala
- Why
- The EPFO applied the wrong calculation factor, leading to a lower payout than what the employee was entitled to receive
EPFO's Position
Employee's Position
Calculation Error
EPFO's Position
EPFO claims it followed standard procedures but made an unintentional error in applying the wrong calculation factor.
Employee's Position
The employee argues that the error resulted in a significant underpayment of his rightful pension benefits.
Compensation
EPFO's Position
EPFO may view the compensation as an additional financial burden beyond the corrected payment.
Employee's Position
The employee seeks not only the corrected payment but also compensation for the mental agony and harassment caused by the error.
- Employee's Position
- The employee argues that the error resulted in a significant underpayment of his rightful pension benefits.
- Compensation
- The employee seeks not only the corrected payment but also compensation for the mental agony and harassment caused by the error.
- Calculation Error
- EPFO claims it followed standard procedures but made an unintentional error in applying the wrong calculation factor.
- Employee's Position
- The employee argues that the error resulted in a significant underpayment of his rightful pension benefits.
- Compensation
- The employee seeks not only the corrected payment but also compensation for the mental agony and harassment caused by the error.
- Calculation Error
- EPFO claims it followed standard procedures but made an unintentional error in applying the wrong calculation factor.
- Employee's Position
- The employee argues that the error resulted in a significant underpayment of his rightful pension benefits.
- Compensation
- The employee seeks not only the corrected payment but also compensation for the mental agony and harassment caused by the error.