PF members are eligible to receive an pension after retirement. Generally 8.33% of your basic salary contributed by Employer goes towards EPS scheme. This EPS contributed should not exceed 15000 even when the employee gets an higher salary. There are provisions in EPF account where you are required to contribute 1.16% additionally if you opt for a higher pension. The current set of circulars is regarding the EPF Pension where Employees can choose to receive a higher pension based on their declaration and consent.
If the employee’s basic salary exceeds Rs 15000, then employee is not eligible for EPS scheme itself. By this option of availing higher pension is not available for employees who have joined PF after September 2014 and their basic salary is more than Rs15000
Employees who joined EPF before September 2014 and employees who retired before Nov2022 are eligible for higher pension under some certain conditions.
If you have not opted for higher pension and not paid, then you are not eligible for Higher pension. But if you have paid EPS on higher wages and exercised higher pension option then you are eligible for higher pension. (You are eligible only if you have opted for higher pension but have been rejected by EPFO(
You would be eligible only if you have paid for higher pension and addition to that you should satisfy either one of the criteria such as You have should have never opted for higher pension by EPFO (or) you should have opted for higher pension and rejected by EPFO. In case if you have never paid for higher pension and not opted for higher pension then you won’t be eligible for higher pension.
If you are still continuing in service then you are eligible provided you have paid EPS contribution on higher wages. And in addition to that either you should have never opted for higher pension option or you should have opted for higher pension and should have been rejected by EPFO
Employees can opt for joint option if they need a higher pension under EPS scheme but they may need to contribute more towards EPS
The main disadvantage is you will be getting less lumpsum amount when you retire or leave the service but you will be getting a higher pension monthly. (If you are filing a withdrawal, you will get less amount where’s your pension will increase a little bit depending on your salary)
It all depends upon individual choices. But according to my opinion, since going for higher pension will reduce your lumpsum amount from EPF after you leave the service, it would be best not to file for higher pension. The amount you get from EPF Withdrawal can be invested in other avenues and get better returns.
Currently Employer contributes 8.33% of our Basic Salary towards EPS and the remaining 3.67% goes towards EPF. If an Employee files a joint declaration for Higher pension,
The answer is no. Any employees who joined EPF after 2014 is not eligible for EPS and they need not worry about the higher pension scheme
EPFO has announced the last date to file for Higher pension claim is on June26th, 2023. This might or might not get extended based on number of declarations filed for higher pension on EPS accounts.