EPFO Higher Pension: Eligibility, Application, and Calculation

To be eligible for a higher pension from EPFO, you must have at least 10 years of continuous service with your current employer. This is a crucial requirement, so make sure you've met this condition.

The application process for a higher pension is relatively straightforward. You'll need to submit a request to your employer, who will then forward it to the EPFO. It's essential to provide all necessary documents and proof of service to avoid any delays.

The pension calculation is based on the average salary of the last 10 years of service. This average salary will be calculated and multiplied by the number of years of service to determine your pension amount.

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The Employees Provident Fund (EPF) is a retirement savings plan for Indian employees, introduced by the government in 1952. It's a great way to save for the future and secure your financial well-being.

The EPF is a contributory pension scheme, which means both the employer and employee contribute to it. The employer contributes 8.33% of the employee's salary to the EPF account, and the employee contributes 12% of their salary.

In 1995, the government introduced the Employees Pension Scheme, 1995 (EPS-95), which provided for employer contributions to the pension scheme. This scheme capped the maximum monthly pension at Rs.5,000 or Rs.6,000.

The EPS-95 scheme was later amended in 2014, increasing the maximum pensionable salary to Rs.15,000. However, this change only applies to employees who joined the EPF scheme after September 1, 2014.

Employees who were part of the EPS-95 scheme or joined before September 1, 2014, can still contribute 8.33% to the EPS on their actual salary, but they need to file a new joint option with the EPFO within six months.

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To be eligible for EPF, you must be a salaried employee with a basic salary up to Rs. 15,000 per month.

The EPF scheme is mandatory for all establishments with 20 or more employees, and employers are required to contribute 12% of the employee's basic wages to the EPF fund.

To apply for EPF, you'll need to submit Form 5 to your employer, who will then register you with the EPFO.

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To be eligible for a higher pension under the Employees' Provident Fund (EPF), you need to meet certain criteria. Employees who retired before September 1, 2014, are eligible if they exercised the joint option under para 11(3) of EPS-95.

The EPFO has specific eligibility criteria for employees who were part of the EPF before 2014 but are still working or retired after that date. This includes employees who continued to be members after 2014, contributed to EPS on salaries exceeding Rs.5,000 or Rs.6,500, and did not exercise the joint option under the deleted para 11(3) of the EPS.

Employees who were members of EPS-95 and did not exercise the joint option under the deleted para 11(3) of the EPS but did not file new joint options after the amendment of 2014 are not eligible for a higher pension. Their EPS contributions will be 8.33% on the maximum amount of Rs.15,000, irrespective of their actual salaries.

To check your eligibility, you can refer to the EPFO's eligibility criteria, which are outlined in their circulars. The EPFO has also activated a unified members' portal for eligible members to opt for a higher pension.

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To apply for EPF, eligible employees who retired before 2014 can submit a higher pension claim online or with the regional EPF offices.

The last date to apply for a higher pension scheme is July 11, 2023, which was extended due to several representations.

Eligible employees who joined EPS-95 but are retired or working after 2014 can apply for a joint option form online or with the concerned regional EPF offices.

To exercise the joint option, click on the ‘Pension on Higher Salary: Exercise of Joint Option under para 11(3) and para 11(4) of EPS-1995 on or before 3rd May 2023’ option.

You'll need to input your personal details such as Universal Account Number (UAN), name, date of birth, Aadhaar number, and Aadhaar-linked mobile number to submit the application.

The field officers will examine the application form, and if complete, they'll verify the wage details submitted by the employers with their data.

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If there's a mismatch, the employer and the employee will be informed, and one month's time will be given to rectify the issue.

You can also apply for a higher pension through the EPFO Unified Member portal by visiting the website and clicking on the ‘Pension on Higher Salary: Online application for validation of Joint Option’ option.

Fill in the details and submit the form to digitally register your application and receive a receipt number.

The EPFO will forward the applications to the respective employers, who will verify them through e-sign/digital signature for further processing.

The APFC/RPFC-II will examine the case and send the higher pension decision to the applicants via email, post, phone or SMS.

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Public Sector Undertaking (PSU) officers have been protesting against the Employees' Provident Fund (EPF) organization's PF calculation method. They claim it's unfair and doesn't reflect their actual contributions.

The EPFO's current method of calculating PF contributions is based on the basic salary and dearness allowance (DA) of employees. This method has been criticized by PSU officers for being outdated and not accurately reflecting their actual contributions.

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PSU officers have been demanding a change in the PF calculation method to include their non-practicing allowances (NPAs) in the calculation. They argue that these allowances are a significant part of their income and should be included in the PF calculation.

The EPFO has been resistant to changing the PF calculation method, citing the need for a uniform and standardized approach. However, the PSU officers' protest has brought attention to the issue and may lead to a re-evaluation of the current method.

The PSU officers' protest has also highlighted the need for transparency and clarity in the PF calculation process. They argue that the current method is complex and difficult to understand, leading to confusion and disputes among employees.

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When you contribute to the EPF, it's essential to understand how your contributions affect your pension. The average monthly pay earned during the contributory period of service is used to determine the pension amount.

To calculate your pension, the average salary of 60 months is multiplied by your service period and then divided by 70. This formula is used to calculate the pension under the EPS scheme. This is a straightforward calculation that takes into account your consistent earnings over a period of time.

Higher pension contributions under the Employees' Pension Scheme (EPS) are a crucial aspect of EPF contribution and calculation. The EPS contribution is 8.33% of an employee's salary, but this can be higher if the employee exercises the joint option.

To be eligible for higher pension contributions, employees must have exercised the joint option. However, if they haven't, they can still exercise it within a certain timeframe.

Here's a summary of the eligibility criteria for higher pension contributions under EPS:

If an employee exercises the joint option, their employer will contribute a higher amount to the EPS, and the EPFO will calculate the monthly EPS amount based on the actual salary. The difference amount will be transferred from the EPF to the EPS.

The EPF calculation formula is used to determine your pension amount.

To calculate your pension, the average monthly pay earned during the contributory period of service in the 12 months before leaving EPFO is considered.

The formula for calculating pension under the EPS scheme has changed over time.

For employees who retired after 2014, the average monthly pay earned during the contributory period of service in the 60 months before leaving EPFO is taken into account.

To calculate your pension, you need to multiply the average salary of 60 months by your service period, then divide the result by 70.

The result of this calculation will give you your pension amount.

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To opt for a higher pension, eligible EPF members must submit their joint option/higher pension claim application, which should contain a disclaimer or declaration. This application requires explicit consent from the employee for a share adjustment from PF to EPS and a re-deposit of the amount.

The application process involves submitting certain documents, including the employee's undertaking for a share transfer of funds from exempted PF trust to the EPFO pension fund. This undertaking will be effective for the deposit of due contribution and interest up to the payment date within the specified time.

To deposit the employer’s contribution share refund, the EPFO will use the interest rate declared under para 60 of the EPF Scheme, 1952, for employees of unexempted establishments. If you face any issues with your higher pension claim, you can raise a complaint on EPFiGMS.

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To opt for a higher pension, you'll need to submit a joint option/higher pension claim application that includes a disclaimer or declaration.

The employee must give explicit consent in the joint option/application form for a share adjustment from PF to EPS and a re-deposit of the amount.

You'll also need to provide an undertaking from the employee's trustee for a share transfer of funds from exempted PF trust to the EPFO pension fund.

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The undertaking will be effective for the deposit of due contribution and interest up to the payment date within the specified time.

The employer's contribution share refund will be deposited with the interest rate declared under para 60 of the EPF Scheme, 1952, for employees of unexempted establishments.

Here are the documents you'll need to submit with the higher pension claim application:

The EPFO will issue further circulars regarding the deposit method and pension computation.

If you face a grievance, you can raise a complaint on EPFiGMS to get a higher pension after submitting the application and payment of the due contribution if any.

If you're eligible, you can apply for a higher pension claim with the EPFO.

To apply, you can submit the EPF higher pension option form online or with the regional EPF offices.

Employees who retired before 2014 can apply for the higher pension claim.

The eligible employees who joined EPS-95 but are retired/working after 2014 can apply the joint option form online or with the concerned regional EPF offices within 11/07/2023.

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To apply for a joint option online pension form, click on the ‘Pension on Higher Salary: Exercise of Joint Option under para 11(3) and para 11(4) of EPS-1995 on or before 3rd May 2023’ option.

The field officers will examine the joint option forms and verify the wage details submitted by the employers with their data.

If the form is complete and the details match, the dues will be calculated and an order will be passed for depositing/transferring the dues.

In cases where there's a mismatch, the APFC/RPFC-II will inform the employer and the employee, giving them one month to rectify the issue.

If the employer doesn't approve the join option, they'll be given a chance to provide additional proof or correct any mistakes before the form is rejected.

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To track your EPFO higher pension application status, you can visit the EPFO Unified Member portal.

The first step is to click on the ‘Track Application Status for Pension on Higher Wages’ option.

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Next, you'll need to click on ‘Click Here’ under the ‘Track application status for Pension on Higher Wages’ tab.

You'll then need to select and enter your application acknowledgement number, UAN number, or PPO number.

After that, enter the Captcha code, tick the consent, and click on the ‘Get OTP’ button.

Once you've entered the OTP, click on ‘Get Status’ and your application status will be displayed on the screen.

The Pension and Wages issue is quite complex, but let's break it down simply. The EPS 95 Scheme was amended in 2014 to increase the cap on monthly salary from Rs 6,500 to Rs 15,000.

This change allowed members and employers to contribute 8.33% of their actual salary towards the pension fund, even if it exceeded the EPS ceiling.

Employees who opted for the amended scheme had to contribute 1.16% of their monthly salary exceeding Rs 15,000 towards the pension fund.

However, many people missed out on this opportunity and went to court. The Supreme Court upheld the 2014 amendments, allowing subscribers to opt for higher pensions.

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You'll need to carefully consider the trade-offs involved in opting for a higher pension under the EPFO. A higher pension will come at the cost of losing the benefits of compounding from the EPF.

A large portion of your EPF corpus will be reallocated to the EPS scheme, which means you'll be giving up a significant amount of money. This is because the EPS scheme doesn't earn interest like the EPF does.

You won't earn interest on your EPS contributions, unlike with the EPF. Additionally, you won't have the option to receive a lump sum at retirement with an EPS account.

If you're planning to retire early, opting for a higher pension might not be the best choice. You'll need to have completed 10 years of service and be at least 58 years old to be eligible for a pension.

You'll need to think about your financial goals and whether you'll need a lump sum at retirement to fulfill them. This can help you decide whether to opt for a higher annuity or receive your EPF corpus in one go.

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