NEW DELHI: Pensioners opting for higher pension will soon get to know the amount they are likely to receive as pension at the time of retirement. In a fresh circular, the Employees’ Provident Fund Organisation (EPFO) has informed its field offices that the method of computing higher pension will be clarified in a subsequent circular.
At present, eligible subscribers, who are interested in signing up for the higher pension, will be able to assess their dues, including the interest payable, towards the pension fund.
Taking a step in this direction, the EPFO has directed its field offices to calculate dues for its subscribers opting for the higher pension scheme. The dues will be calculated after verifying the wage details.
The dues will be calculated on the basis of the fact that 8.33 per cent of employer’s share on higher pay from November 16, 1995, or from the date the pay exceeds the wage ceiling, and 1.16 per cent of employer’s share on higher pay above Rs 15,000 per month will be calculated towards increased pension contribution. The amount already deposited in the EPS account will be deducted from the sum mentioned above. Further, the interest to be charged on dues shall be the interest earned by members on their PF contribution.
The government via a notification dated May 4, 2023, has enhanced the employer’s contribution to the EPS account from 8.33 per cent to 9.49 per cent on EPS contribution above Rs 15,000 per month (current wage ceiling) for employees who are eligible to opt for a higher pension from the EPS.
As per the latest EPFO circular, once the total dues (missing contribution and accrued interest) from the past missing EPS account is calculated, the field office will inform the pensioner/employee about the dues.
Subscribers or pensioners opting for higher pension will get three months to give their consent for diverting additional contributions or dues under the EPS, stated the circular.