Employees’ Provident Fund Organisation (EPFO) members receive a monthly pension after retirement. This scheme is only available for the organised sector employees who contribute 12 per cent of their basic monthly salary and dearness allowance to the Employees Provident Fund (EPF) account. Likewise, the employer also contributes 12 per cent of the employee’s salary to the fund, but 8.33 per cent goes to the Employees’ Pension Scheme (EPS), and 3.67 per cent to the EPF account. A cap on the EPS contribution was introduced in 2014 through an amendment to the EPS regulation. Before this change, employees could choose a higher EPS amount. Here are the changes EPFO introduced regarding EPS contributions.

The government introduced EPS under Section 6A of the EPF Act in 1995, requiring employers to contribute 8.33 per cent of a staff’s basic salary towards the pension scheme. Initially, the maximum monthly pension was capped at around Rs 6,000, so the employers contributed 8.33 per cent. The pension was later increased. In March 1996, a proviso was added to para 11(3) of the Act, allowing the employer and employee to contribute 8.33 per cent of the actual salary, above the pension limit at the time. Under that order, the EPFO gave employees six months to file a joint option form for higher pension.

However, effective September 1, 2014, the government increased the maximum pensionable salary to Rs 15,000, and while employers’ contribution of 8.33 per cent to EPF remained the same, it scrapped the para 11(3) provision. Also, the government allowed those who joined EPS before this date to contribute 8.33 per cent on the actual salary as against the Rs 15,000 cap, provided they filed a new joint option with the EPFO within six months.

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EPFO Higher Pension Calculation

EPFO provides a calculator to help employees calculate their pension amount under the Provident Fund scheme. The calculator assists in determining the amount the employee needs to pay for a higher pension. As salaries increase, the employer’s contributions towards the pension scheme also rise. The tool helps make informed decisions by projecting the financial impact of higher pension benefits on an individual’s retirement savings and income streams.

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How To Track Your EPFO Higher Pension Application Status?

1. To track the status of your higher pension application, visit the EPFO’s unified portal, then enter your acknowledgement number, the UAN, and the PPO number.

2. After entering the captcha code, click the checkbox to give your consent to provide Aadhaar-based authentication via biometric, or one-time password (OTP).

3. Then click “Get OTP”.

4. After entering the OTP, you can check your higher pension application status.