अब तक की सबसे बड़ी खबर, ‘हायर पेंशन स्कीम कैलकुलेटर’ के 5 जबरदस्त फायदे जो आपको जानने चाहिए!

Higher Pension Scheme Calculator, Members of the Employees’ Provident Fund Organization (EPFO) are eligible to receive a pension upon retirement. Employers and workers now contribute 12% of their base pay and dearness allowance to the Employee Provident Fund (EPF). The Employees’ Pension Scheme (EPS) receives 8.33% of the employer’s 12% contribution, while the EPF receives 3.67%. The employee’s 8.33% EPS contribution is capped at Rs. 15,000, regardless of their higher salary. A cap on the EPS contribution was added in 2014 when the EPS was revised.

Employees might choose to make larger EPS contributions prior to the 2014 EPS modification. This page discusses the EPFO circular on increased pensions and the claim process.

What is the EPF higher pension scheme?

In 1995, the government introduced a pension scheme under Section 6A of the EPF Act. The Employees Pension Scheme, 1995 (EPS-95) stipulates that the employer must provide an 8.33% pension plan contribution. The EPS-95 established a maximum pension value of Rs. 5,000 or Rs. 6,000 per month. Employers were therefore obligated to contribute 8.33% of Rs. 5,000, which was later raised to Rs. 6,500, to the pension scheme.

Paragraph 11(3) of the EPS-95 was amended in March 1996 to allow the employer and employee to deposit 8.33% of their real salary to the EPS, beyond the Rs. 5,000 or Rs. 6,500 level. A salary this high would qualify as pensionable. However, the workers had six months to submit a joint option form to the EPFO in order to increase their pension payments to the EPS. With effect from January 9, 2014, the government modified the EPS-95 program. This led to an increase in the maximum pensionable wage to Rs. 15,000. Additionally, it left out the clause in paragraph 11(3) that states that both the employer and the employee may exercise their choice to contribute EPS on a greater income amount.

As a result, employers would have to pay an 8.33% EPS of up to Rs. 15,000. to workers who joined the EPF plan after January 9, 2014, even if they were receiving a higher wage. However, if they submitted a new joint option with the EPFO within six months, that is, by February 28, 2015, workers who were a part of EPS-95 or joined before January 9, 2014, might contribute 8.33% to EPS on the real wage as opposed to the ceiling of Rs. 15,000.

Also Read: Amma Vodi Scheme, shaladarpanportalgov.com, yojanaforall.com, Onlinereferjobs

Higher pension contribution under EPS

Following the 2014 change pertaining to pension contributions on higher incomes, there were problems. Many workers claimed to be aware of the shared option to contribute to a pension on a higher wage level. Many employees filed a joint option, which the EPFO denied. Without submitting the joint option, employers paid 8.33% of employees’ real earnings to the pension, but the pension computation used Rs. 15,000 as the pensionable pay.

In order to get larger pensions based on their contributions to their real pay amounts, several employees filed lawsuits in High Courts. The Supreme Court heard the case. The following is a summary of the Supreme Court’s decision:

Status of Employee	Exercise of joint option	Eligibility to claim 8.33% pension contribution on a higher salary	Mode of higher pension claim
Employees in service as on 01/09/2014	Exercised joint option and rejected by the EPFO	Yes	By filing a higher pension claim application
Employees in service as of 01/09/2014	Not exercised joint option but contributing to EPS above the cap of Rs.5,000/Rs,6,500	Yes	By exercising the joint option
Employees retired before 01/09/2014	Exercised joint option and rejected by the EPFO	Yes	By filing a higher pension claim application
Employees retired before 01/09/2014	Not exercising a joint option	No	Not applicable

According to a Supreme Court decision, employees who were enrolled in the EPF before January 9, 2014, but have not yet exercised the joint option, have until March 5, 2023, to do so. The EPFO once more extended the deadline until July 11, 2023. For these employees, a higher EPS contribution will be calculated as of the joining date.

For example:

• The EPF accepted Mr. “X” as a member in 1998.
• He hasn’t used the joint option yet.
• He received an additional Rs. 50,000 in 2015.
• His employer contributes Rs. 6,000, or 12% of his basic wage, to his EPF.
• The EPS will get Rs. 1,250 from the employer’s contribution, which is 8.33% of Rs. 15,000 (the statutory wage cap).
• The EPF will get Rs. 4,750, which is equal to Rs. 6,000 less Rs. 1,250.
• Since the EPS contribution exceeds the statutory pay ceiling of Rs. 6,500, he exercises the joint option by July 11, 2023, in accordance with the Supreme Court’s ruling.
• His employer will make contributions to EPF of Rs. 4,165 (i.e., 8.33% of Rs. 50,000, his real pay) and Rs. 1,835 (Rs. 6,000 – Rs. 4,165) upon the submission of the joint option.
• The EPFO will calculate the monthly EPS amount at 8.33% of the actual pay and send the difference between the EPF and EPS.
• In these situations, the EPFO will move the difference from the PF account to the EPS account and go back to the joining date or 01/11/1995, whichever comes first. However, the higher pension contribution would reduce the employee’s EPF lump payment corpus at retirement.

Higher pension scheme application last date

The EPFO first announced that the deadline for applying to the higher pension plan is May 3, 2023. However, the deadline was extended due to several representations. Therefore, July 11, 2023, is the deadline for applying to the higher pension plan.

Also Read: Free Laptop Scheme 2025, Mobilenumbertrackeronline, indnewsupdates.com, ssorajasthanidlogin.com

How to track EPFO’s higher pension application status?

The actions listed below will allow you to verify the progress of your EPFO higher pension application:

• Step 1: Go to the portal for EPFO Unified Members.
• Step 2: Select Track Application Status for Higher Wages Pension.

• Step 3: Select Click Here from the Track application status for Pension on Higher Wages tab on the following page.

• Step 4: Choose and input the PPO, UAN, or application acknowledgment number.
• Step 5: Click the Get OTP button after entering the Captcha code and checking the permission box.
• Step 6: Click Get Status after entering the OTP. The screen will show the status of the application.

EPF higher pension eligibility

In December 2022, EPFO published a circular outlining the requirements for qualifying and the application procedure for requesting a higher pension. The following is a list of prerequisites for a greater pension:

• The workers retired prior to January 9, 2014.
• As members of EPS-95, the employees exercised their joint option under EPS-95 para. 11(3).
• When wages are above the Rs. 5,000 or Rs. 6,500 pay threshold, both employers and employees contribute EPS.
• The EPFO declined to exercise such an option.

EPF higher pension option form

Entitled workers who retired prior to 2014 are entitled to submit a higher pension claim to the EPFO. They can apply with the regional EPF offices or online (as shown below) for the greater pension claim. In order to obtain higher pensions, qualified workers who joined EPS-95 but are retired or still employed after 2014 may apply online (as shown below) or in person at the relevant regional EPF offices by July 11, 2023.

How to apply for a higher pension in EPF?

The procedure for requesting a larger pension payout for workers who retired before 2014 is as follows:

• Step 1: Workers must go to the EPFO Unified Member website.
• Step 2: Select the Online application for validation of the Joint Option: Pension on Higher Salary option.

• Step 3: Complete the information and send the form in.

Every application will be digitally registered by the EPFO, which will also provide the applicant with their receipt number. The applications will be sent to the appropriate employers, who will validate them using an e-signature or digital signature before processing them further. After reviewing the case, the APFC/RPFC-II will notify the applicants of the higher pension decision via phone, SMS, email, or postal mail.

The application will be reviewed by the field officers. The wage information provided by the employers will be compared with the field offices’ data if the form is complete. When the information provided by the employers and the field officers matches, RPFC-II/RPFC-I/APFC will compute the dues and issue an order for transmitting or depositing the money. When there is a discrepancy, the APFC/RPFC-II will notify the employer and the pensioner, and they will have one month to make the necessary corrections.

Before the application is rejected, the employer will have a chance to amend any inaccuracies or submit further documentation if the employer does not approve it. This change will be provided to the pensioners with notice and for a duration of one month.

How to apply for a joint option online pension form in EPF?

For employees who are part of EPS-95 but are employed or retired after 2014, the steps to exercise or apply for a joint option under paragraphs 11(3) and 11(4) of EPS-95 to claim a higher pension are as follows:

• Step 1: Workers must go to the EPFO Unified Member website.
• Second, choose the option labeled “Pension on Higher Salary: Exercise of Joint Option under paras. 11(3) and 11(4) of EPS-1995 on or before 3rd May 2023.

• Step 3: Complete the information and send the form in.

The joint option forms will be reviewed by the field officers. The wage information provided by the employers will be compared with the field offices’ data if the form is complete. When the information provided by the employers and the field officers matches, the dues will be determined and RPFC-II/RPFC-I/APFC will issue an order for the deposit or transfer of the dues. If there is a discrepancy, the APFC/RPFC-II will notify the employer and employee, and they will have one month to make the necessary corrections.

If the employer does not approve the join option, they will have a chance to remedy any problems or provide more documentation before the form is rejected. Employees will be informed of this change, which will be offered for a month.

Also Read: PLI Post Office Scheme, digitizeindiagovin.com, Typingspeedtestonline, Nebsit Council

Faq’s

Q. How can I increase my EPF pension?

Ans: To get a larger pension, qualified workers must apply for a combined claim or higher pension claim to the relevant regional PF commissioners.

Q. How is a greater pension from EPF calculated?

Ans: The following formula is used to determine the EPF higher pension: (Pensionable wage X pensionable service)/70 is the monthly pension amount. A circular outlining the process for determining greater pensions will shortly be released by the EPF.

@PAY