From low pensions to delayed dues: These retirement disputes could affect you, too

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The promise of secure old age for India's retirees is increasingly colliding with low pensions, delayed dues, and complex rules. From EPS-95 pensioners to bank retirees, PSU staff, doctors, and informal sector workers, disputes around retirement benefits are piling up in courts, grievance portals, and protest sites across the country. Following are eight major flashpoints that every salaried worker should be aware of.

Retirees across sectors are complaining about pensions that don’t keep pace with inflation, arrears that are delayed for months or years, and errors in calculating family pensions. The government grievance portals are filled with complaints over incorrect payments, bank-level delays, and incomplete settlement of retirement dues. Many seniors end up fighting long, exhausting legal battles simply to receive what is already due to them.

One of the loudest flashpoints involves pension amounts that retirees say are too low to cover basic living expenses. EPS-95 pensioners have been demanding a higher minimum pension so that rising costs of healthcare, rent, and daily necessities don't wipe out their limited income. At the same time, bank retirees have been asking for pension revision parity with government employees, arguing that their pensions also should be periodically updated to reflect pay revisions and inflation. The sense of unfairness between different groups of retirees has sparked protests and multiple court cases.

Gratuity has been meant to act as a safety cushion at the time of retirement, but it is another major source of conflict. Retirees often report disputes around the ceiling on gratuity payable, delays in release of the amount, and confusion around how it is taxed. Several also complain that by the time arrears and corrections are processed, the value of money has eroded. These issues are usually connected with more general problems in India's pension architecture, like fragmented schemes, low coverage in the informal sector, and lack of clarity for employees on what they are entitled to at the end of their service.

Differences in retirement ages have set off a separate line of disputes. In the health sector, AYUSH doctors have challenged the practice of allowing higher retirement ages for allopathic doctors while keeping AYUSH doctors at a lower age threshold despite both groups handling critical healthcare responsibilities. Some states have raised the retirement age for allopathic doctors to 62 or even 65 while AYUSH doctors often still retire at 60. Courts have in several instances pushed for parity. In PSUs and other organisations, unilaterally changing retirement age by the employer has led to legal challenges, reinstatement orders and payment of arrears.

The biggest structural fight for the employees of the government and PSU is between the Old Pension Scheme and the National Pension System. The Old Pension Scheme granted retirees a pre-defined, guaranteed pension linked to their last drawn salary, fully funded by the government, and adjusted through dearness allowance hikes. At the same time, NPS is market-linked and contribution-based, where final pension outcomes depend on investment performance and annuity choices. Many employees feel NPS does not offer certainty or generosity like OPS, and the demand to restore OPS or significantly enhance NPS benefits to ensure better retirement security has been growing in several states and unions.

A large proportion of the work force is in agriculture, small businesses, gig work or other informal jobs that carry no formal pension at all. They want a universal, government-backed social security fund and a guaranteed minimum pension. This is partly addressed by the new Labour Code notified in 2025, which extends social security cover to unorganised, gig and platform workers through a national database and mandatory contributions from aggregators into a welfare fund. How effectively this framework will be implemented will decide whether crores of workers who currently retire with no pension can finally see some basic income security in old age.

Another vulnerable group is family pensioners, usually widows. Their pensions are typically a fraction of the original pension or salary and, when healthcare and rent must be paid for, often fall far short of a living wage. Because these amounts are not always adequately revised upwards with inflation, surviving family members find it hard to maintain even a modest standard of living. This situation has fuelled sustained demands for higher minimum family pensions and automatic, inflation-linked revisions that would at least guarantee a minimum level of dignity for survivors.

Layered over all these issues is a deeper administrative problem-delays, rigid interpretation of rules, and what many retirees describe as a lack of empathy. Pension and gratuity files may slowly make their way through departments and banks, with minor technical issues used to deny or delay legitimate claims. Seniors may be asked to repeatedly submit the same documents or visit offices in person, despite their age and health constraints. Many landmark court judgments criticize this approach and emphasize that retirement benefits are a right, not a favour. They call for faster, more humane handling of pension and gratuity claims so retirees are not forced into litigation simply to secure what is already theirs.

Put together, these flashpoints show that India's retirement system is under strain. For today's workers, understanding these disputes is not just empathy for current retirees-it's also a reminder to track their own pension entitlements, gratuity calculations, and social security coverage long before they reach the exit gate.

Keep all your employment and salary records, PF statements, pension scheme options, and gratuity calculations at one place and check them at least once a year. The service records, which include dates of joining, promotions, revisions in pay, should be correctly reflected in them. Confirm whether the employer is depositing the EPF/NPS contributions on time. Get written clarity on your entitlements with regard to pension and gratuity well in advance before retirement.

First, take up the issue in writing with your employer or the pension disbursing authority, such as bank or EPFO, keeping copies of all correspondence. In case the dispute is not resolved at the above two levels, such disputes can be escalated to the relevant grievance portal such as EPFiGMS/CPENGRAMS for many central government and pension issues, and where necessary, help should be sought from a pensioners' association or a legal professional to explore tribunal or court remedies.