Higher pension contribution under Employees Pension Scheme EPS-95

In 1995, the Government introduced a pension scheme under Section 6A of the EPF Act. The Employees Pension Scheme, 1995 (EPS-95) provided that the employer’s contribution of 8.33% should be towards the pension scheme. The EPS-95 capped the maximum monthly pension at Rs.5,000 or Rs.6,000. Thus, employers had to contribute 8.33% of Rs.5,000, which was later raised to Rs.6,500, towards the pension scheme.

In March 1996, a provision was added to para 11(3) of the EPS-95, giving the employer and employee an option to contribute 8.33% of actual salary (above the cap of Rs.5,000 or Rs.6,500) to the EPS. Such a higher salary would be considered a pensionable salary. However, the EPFO gave six months for the employees to file a joint option form for higher pension contributions to the EPS.

The government amended the EPS-95 scheme effective from 01/09/2014. It increased the maximum pensionable salary to Rs.15,000. It also omitted the provision to para 11(3), i.e. exercise of the option by the employer and employee to contribute EPS on a higher salary amount.

Thus, employers would make an EPS contribution of 8.33% on a maximum of Rs.15,000 for the employees joining the EPF scheme after 01/09/2014, even when they draw a higher salary.

However, the employees who were part of EPS-95 or joined before 01/09/2014 could contribute 8.33% to EPS on the actual salary as against the cap of Rs.15,000 if they filed a new joint option with the EPFO within six months, i.e. 28/02/2015.

There were issues after the 2014 amendment regarding pension contributions on higher salaries. Many employees stated that they did know about the exercise of the joint option for contributing pension on the higher salary amount. The EPFO rejected the joint option filed by many employees. Employers contributed 8.33% of pension on employees’ actual salaries without filing the joint option, but the pensionable salary was taken as Rs.15,000 for pension calculation.

Thus, many employees filed cases in High Courts for receiving higher pensions based on the contributions made on actual salary amounts. The Supreme Court took up this matter. The summary of the Supreme Court decision is as follows:

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 on 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 exercised joint option	No	Not applicable

The Supreme Court provided that employees who were part of the EPF before 01/09/2014 but have not exercised the joint option can exercise it within 03/05/2023. The EPFO further extended the due date to 11/07/2023. For such employees, a higher EPS contribution will be calculated from the date of their joining.

For example:

Mr. ‘X’ became a member of the EPF in 1998.
He has not exercised the joint option.
His salary increased to Rs.50,000 in 2015.
His employer contributes Rs.6,000 (i.e. 12% of his basic wage) towards EPF.
Of the employer’s contribution, Rs.1,250 (i.e. 8.33% of Rs.15,000; the statutory wage cap) will go to the EPS.
The remaining Rs.4,750 (i.e. Rs.6,000 – Rs.1,250) will go to the EPF.
He exercises the joint option within 11/07/2023 as per the Supreme Court judgement since the EPS contribution is above the statutory wage cap of Rs.6,500.
After submitting the joint option, his employer will contribute Rs.4,165 (i.e. 8.33% of Rs.50,000; his actual salary) and Rs.1,835 (Rs.6,000 – Rs.4,165) towards EPF.
The EPFO will calculate the monthly EPS amount of 8.33% of the actual salary and transfer the difference amount from the EPF to the EPS.

In such cases, the EPFO will return to the joining date or 01/11/1995, whichever is later, and transfer the difference from the PF account to the EPS account. But, the higher pension contribution will reduce the EPF lumpsum corpus that the employee gets upon retirement.

How to track EPFO higher pension application status?

You can check the status of the EPFO higher pension application by following the below steps:

Step 1: Visit the EPFO Unified Member portal.

Step 2: Click on the ‘Track Application Status for Pension on Higher Wages’.

Step 3: On the next page, click on ‘Click Here’ under the ‘Track application status for Pension on Higher Wages’ tab.

Step 4: Select and enter the application acknowledgement number, UAN number or PPO number.

Step 5: Enter the Captcha code, tick the consent and click on the ‘Get OTP’ button.

Step 6: Enter the OTP and click on ‘Get Status’. The application status will be displayed on the screen.

EPF higher pension eligibility

EPFO issued a circular in December 2022 providing the eligibility criteria and application process for claiming a higher pension. Below are the eligibility criteria for a higher pension:

The employees retired before 01/09/2014.
The employees exercised the joint option under para 11(3) of EPS-95 while being a member of EPS-95.
The employees and employers contributed EPS on salaries exceeding the wage ceiling of Rs.5,000 or Rs.6,500.
The EPFO declined the exercise of such an option.

However, the EPFO circular did not provide a higher pension option for employees who were part of the EPF before 01/09/2014 but still working/retired after 2014. As per the Supreme Court judgement, such employees were also eligible to claim a higher pension.

Thus, the EPFO issued another circular in February mentioning higher pension eligibility criteria for employees in service/retired after 2014. Below are the eligibility criteria to file a joint option for getting a higher pension:

The employees who were members before 01/09/2014 continued to be members after that date.
The employees and employers contributed to EPS on salaries exceeding the wage ceiling of Rs.5,000 or Rs.6,500.
The employees and employers were members of EPS-95 and did not exercise the joint option provided under the deleted para 11(3) of the EPS and amendment of 2014.

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

EPF higher pension option form

The eligible employees who retired before 2014 can apply for a higher pension claim with the EPFO. They can apply for the higher pension claim online (as shown below) or with the regional EPF offices.

The eligible employees who joined EPS-95 but are retired/working after 2014 can apply the joint option form online (as shown below) or with the concerned regional EPF offices within 11/07/2023 to receive higher pensions.

How to apply for a higher pension in EPF?

Below is the step to claim a higher pension amount for employees retired before 2014:

Step 1: Employees need to visit the EPFO Unified Member portal.

Step 2: Click on the ‘Pension on Higher Salary: Online application for validation of Joint Option’ option.

Step 3: Fill in the details and submit the form.

The EPFO will digitally register each application and provide the receipt number to the applicant. It 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.

The field officers will examine the application form. If the form is complete, the wage details submitted by the employers will be verified with the the field offices data. Where the field officers data and employers’ details match, the dues will be calculated and an order will be passed by RPFC-II/RPFC-I/APFC for depositing/transferring the dues. The cases where there is a mismatch, it will informed to the employer and the pensioner by the APFC/RPFC-II and one month time will be given to rectify the same.

In case the application form is not approved by the employer, an opportunity will be given to the employer to provide additional proof/evidence or correct any mistakes/errors before rejection of the form. Such opportunity will be given for a period of one month and under intimation to the pensioners.

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

Below is the step to exercise/apply for joint option under para 11(3) and para 11(4) of EPS-95 to claim for higher pension for employees who are part of EPS-95 but are working or retired after 2014:

Step 1: Employees need to visit the EPFO Unified Member portal.

Step 2: 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.

Step 3: Fill in the details and submit the form.

The field officers will examine the joint option forms. If the form is complete, the wage details submitted by the employers will be verified with the the field offices data. Where the field officers data and employers’ details match, the dues will be calculated and an order will be passed by RPFC-II/RPFC-I/APFC for depositing/transferring the dues. The cases where there is a mismatch, it will informed to the employer and the employee by the APFC/RPFC-II and one month time will be given to rectify the same.

In case the join option is not approved by the employer, an opportunity will be given to the employer to provide additional proof/evidence or correct any mistakes/errors before rejection of the form. Such opportunity will be given for a period of one month and under intimation to the employees.

EPFO guidelines for higher pension

The joint option/higher pension claim application should contain a disclaimer or declaration.
An employee should give explicit consent in the joint option/application form for a share adjustment from PF to EPS and a re-deposit of the amount.
An employee should give an undertaking of the trustee for a share transfer of funds from exempted PF trust to the EPFO pension fund. 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.
The following documents should be submitted with the higher pension claim application:
- Proof of joint option verified by the employer filed under para 26(6) of the EPF scheme.
- Proof of joint option verified by the employer filed under para 11(3) provision.
- Proof of remittance of EPS contribution in the PF account exceeding the current wage limit of Rs.6,500 or Rs.5,000.
- Written refusal of APFC or EPFO to such remittance or request.
The following documents should be submitted with the joint option application:
- Proof of remittance of EPS contribution in the PF account exceeding the current wage limit of Rs.6,500 or Rs.5,000.
- Proof of joint option verified by the employer filed under para 26(6) of the EPF scheme.
The EPFO will issue further circulars regarding the deposit method and pension computation.
An employee can raise a complaint on EPFiGMS when they face a grievance to get a higher pension after submitting the application and payment of the due contribution if any.

EPF higher pension calculation formula

Calculation of higher pension for employees retired before 2014:

The average monthly pay earned during the contributory period of service in the 12 months before leaving EPFO is considered to determine the pension amount.

Calculation of higher pension for employees 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 determine the pension amount.

Current formula for calculating pension under the EPS scheme is as follows:

(Average salary of 60 months x service period)/70

epf pension calculator

Latest Update

Employees Pension Scheme 1995 amended to provide withdrawal benefit to members having less than 6 months service; Amendment to benefit more than 7 lakh EPS members every year

Government of India has amended the Employees’ Pension Scheme (EPS), 1995 to ensure that EPS members with less than 6 months of contributory service also receive withdrawal benefit. This amendment will benefit more than 7 lakh EPS members every year who leave the scheme with less than 6 months of contributory service.

Further, the Central Government has modified the Table D and has ensured that every completed month of service rendered is taken into account to give proportionate withdrawal benefit to the members. The amount of withdrawal benefit will henceforth depend upon the number of completed months of service rendered by the member and the wages on which EPS contribution was received. The above measure has rationalized the payment of withdrawal benefit to members. It is estimated that every year more than 23 lakh members will benefit from this modification of the Table D.

Every year, lakhs of EPS 95 members leave the scheme prior to rendering the requisite 10 years of contributory service for pension. Such members are given withdrawal benefit as per the provisions of the Scheme.

More than 30 lakh withdrawal benefit claims were settled in the financial year 2023-24.

Till now, the withdrawal benefit was being calculated on the basis of the period of contributory service in completed years and the wages on which EPS contribution has been paid.

Therefore, only after completing 6 months and above of contributory service, the members were entitled for such withdrawal benefit. Consequently, the members leaving scheme, before contributing for 6 months or more, used to get no withdrawal benefit. This was a cause of many claim rejections and grievances as many members were exiting without having less than 6 months of contributory service. During the financial year 2023-24, approximately 7 lakh claims for withdrawal benefits were rejected due to contributory service being less than 6 months. Henceforth, all such EPS members who have not attained the age of 58 years as on 14.06.2024 will become entitled for withdrawal benefit.

Earlier, the calculation under erstwhile Table D ignored the fractional period of service rendered for less than 6 months after each completed year. This resulted in lesser amount of withdrawal benefit in many cases. With the modification of Table D, the Contributory service for calculating the withdrawal benefit will be now considered in completed months. This will ensure fair payment of withdrawal benefit. E.g. a member taking withdrawal benefit after 2 years and 5 months of contributory service & wages of 15,000/- per months was earlier entitled to Rs. 29,850/- withdrawal benefit. Now he will receive Rs. 36,000/- withdrawal benefit.

Higher pension contribution under EPF Act Monthly Pension EPS-95

Thus, employers would make an EPS contribution of 8.33% on a maximum of Rs.15,000 for the employees joining the EPF scheme after 01/09/2014, even when they draw a higher salary.

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 on 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 exercised joint option	No	Not applicable

For example:

Mr. ‘X’ became a member of the EPF in 1998.
He has not exercised the joint option.
His salary increased to Rs.50,000 in 2015.
His employer contributes Rs.6,000 (i.e. 12% of his basic wage) towards EPF.
Of the employer’s contribution, Rs.1,250 (i.e. 8.33% of Rs.15,000; the statutory wage cap) will go to the EPS.
The remaining Rs.4,750 (i.e. Rs.6,000 – Rs.1,250) will go to the EPF.
He exercises the joint option within 11/07/2023 as per the Supreme Court judgement since the EPS contribution is above the statutory wage cap of Rs.6,500.
After submitting the joint option, his employer will contribute Rs.4,165 (i.e. 8.33% of Rs.50,000; his actual salary) and Rs.1,835 (Rs.6,000 – Rs.4,165) towards EPF.
The EPFO will calculate the monthly EPS amount of 8.33% of the actual salary and transfer the difference amount from the EPF to the EPS.

How to track EPFO higher pension application status?

You can check the status of the EPFO higher pension application by following the below steps:

Step 1: Visit the EPFO Unified Member portal.

Step 2: Click on the ‘Track Application Status for Pension on Higher Wages’.

Step 3: On the next page, click on ‘Click Here’ under the ‘Track application status for Pension on Higher Wages’ tab.

Step 4: Select and enter the application acknowledgement number, UAN number or PPO number.

Step 5: Enter the Captcha code, tick the consent and click on the ‘Get OTP’ button.

Step 6: Enter the OTP and click on ‘Get Status’. The application status will be displayed on the screen.

EPF higher pension eligibility

EPFO issued a circular in December 2022 providing the eligibility criteria and application process for claiming a higher pension. Below are the eligibility criteria for a higher pension:

The employees retired before 01/09/2014.
The employees exercised the joint option under para 11(3) of EPS-95 while being a member of EPS-95.
The employees and employers contributed EPS on salaries exceeding the wage ceiling of Rs.5,000 or Rs.6,500.
The EPFO declined the exercise of such an option.

The employees who were members before 01/09/2014 continued to be members after that date.
The employees and employers contributed to EPS on salaries exceeding the wage ceiling of Rs.5,000 or Rs.6,500.
The employees and employers were members of EPS-95 and did not exercise the joint option provided under the deleted para 11(3) of the EPS and amendment of 2014.

EPF higher pension option form

How to apply for a higher pension in EPF?

Below is the step to claim a higher pension amount for employees retired before 2014:

Step 1: Employees need to visit the EPFO Unified Member portal.

Step 2: Click on the ‘Pension on Higher Salary: Online application for validation of Joint Option’ option.

Step 3: Fill in the details and submit the form.

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

Below is the step to exercise/apply for joint option under para 11(3) and para 11(4) of EPS-95 to claim for higher pension for employees who are part of EPS-95 but are working or retired after 2014:

Step 1: Employees need to visit the EPFO Unified Member portal.

Step 2: 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.

Step 3: Fill in the details and submit the form.

EPFO guidelines for higher pension

The joint option/higher pension claim application should contain a disclaimer or declaration.
An employee should give explicit consent in the joint option/application form for a share adjustment from PF to EPS and a re-deposit of the amount.
An employee should give an undertaking of the trustee for a share transfer of funds from exempted PF trust to the EPFO pension fund. 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.
The following documents should be submitted with the higher pension claim application:
- Proof of joint option verified by the employer filed under para 26(6) of the EPF scheme.
- Proof of joint option verified by the employer filed under para 11(3) provision.
- Proof of remittance of EPS contribution in the PF account exceeding the current wage limit of Rs.6,500 or Rs.5,000.
- Written refusal of APFC or EPFO to such remittance or request.
The following documents should be submitted with the joint option application:
- Proof of remittance of EPS contribution in the PF account exceeding the current wage limit of Rs.6,500 or Rs.5,000.
- Proof of joint option verified by the employer filed under para 26(6) of the EPF scheme.
The EPFO will issue further circulars regarding the deposit method and pension computation.
An employee can raise a complaint on EPFiGMS when they face a grievance to get a higher pension after submitting the application and payment of the due contribution if any.

EPF higher pension calculation formula

Calculation of higher pension for employees retired before 2014:

The average monthly pay earned during the contributory period of service in the 12 months before leaving EPFO is considered to determine the pension amount.

Calculation of higher pension for employees 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 determine the pension amount.

Current formula for calculating pension under the EPS scheme is as follows:

(Average salary of 60 months x service period)/70

epf pension calculator

Latest Update

Employees Pension Scheme 1995 amended to provide withdrawal benefit to members having less than 6 months service; Amendment to benefit more than 7 lakh EPS members every year

More than 30 lakh withdrawal benefit claims were settled in the financial year 2023-24.

Till now, the withdrawal benefit was being calculated on the basis of the period of contributory service in completed years and the wages on which EPS contribution has been paid.

EPF Higher pension contribution under EPS-95

Thus, employers would make an EPS contribution of 8.33% on a maximum of Rs.15,000 for the employees joining the EPF scheme after 01/09/2014, even when they draw a higher salary.

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 on 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 exercised joint option	No	Not applicable

For example:

Mr. ‘X’ became a member of the EPF in 1998.
He has not exercised the joint option.
His salary increased to Rs.50,000 in 2015.
His employer contributes Rs.6,000 (i.e. 12% of his basic wage) towards EPF.
Of the employer’s contribution, Rs.1,250 (i.e. 8.33% of Rs.15,000; the statutory wage cap) will go to the EPS.
The remaining Rs.4,750 (i.e. Rs.6,000 – Rs.1,250) will go to the EPF.
He exercises the joint option within 11/07/2023 as per the Supreme Court judgement since the EPS contribution is above the statutory wage cap of Rs.6,500.
After submitting the joint option, his employer will contribute Rs.4,165 (i.e. 8.33% of Rs.50,000; his actual salary) and Rs.1,835 (Rs.6,000 – Rs.4,165) towards EPF.
The EPFO will calculate the monthly EPS amount of 8.33% of the actual salary and transfer the difference amount from the EPF to the EPS.

How to track EPFO higher pension application status?

You can check the status of the EPFO higher pension application by following the below steps:

Step 1: Visit the EPFO Unified Member portal.

Step 2: Click on the ‘Track Application Status for Pension on Higher Wages’.

Step 3: On the next page, click on ‘Click Here’ under the ‘Track application status for Pension on Higher Wages’ tab.

Step 4: Select and enter the application acknowledgement number, UAN number or PPO number.

Step 5: Enter the Captcha code, tick the consent and click on the ‘Get OTP’ button.

Step 6: Enter the OTP and click on ‘Get Status’. The application status will be displayed on the screen.

EPF higher pension eligibility

EPFO issued a circular in December 2022 providing the eligibility criteria and application process for claiming a higher pension. Below are the eligibility criteria for a higher pension:

The employees retired before 01/09/2014.
The employees exercised the joint option under para 11(3) of EPS-95 while being a member of EPS-95.
The employees and employers contributed EPS on salaries exceeding the wage ceiling of Rs.5,000 or Rs.6,500.
The EPFO declined the exercise of such an option.

The employees who were members before 01/09/2014 continued to be members after that date.
The employees and employers contributed to EPS on salaries exceeding the wage ceiling of Rs.5,000 or Rs.6,500.
The employees and employers were members of EPS-95 and did not exercise the joint option provided under the deleted para 11(3) of the EPS and amendment of 2014.

EPF higher pension option form

How to apply for a higher pension in EPF?

Below is the step to claim a higher pension amount for employees retired before 2014:

Step 1: Employees need to visit the EPFO Unified Member portal.

Step 2: Click on the ‘Pension on Higher Salary: Online application for validation of Joint Option’ option.

Step 3: Fill in the details and submit the form.

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

Below is the step to exercise/apply for joint option under para 11(3) and para 11(4) of EPS-95 to claim for higher pension for employees who are part of EPS-95 but are working or retired after 2014:

Step 1: Employees need to visit the EPFO Unified Member portal.

Step 2: 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.

Step 3: Fill in the details and submit the form.

EPFO guidelines for higher pension

The joint option/higher pension claim application should contain a disclaimer or declaration.
An employee should give explicit consent in the joint option/application form for a share adjustment from PF to EPS and a re-deposit of the amount.
An employee should give an undertaking of the trustee for a share transfer of funds from exempted PF trust to the EPFO pension fund. 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.
The following documents should be submitted with the higher pension claim application:
- Proof of joint option verified by the employer filed under para 26(6) of the EPF scheme.
- Proof of joint option verified by the employer filed under para 11(3) provision.
- Proof of remittance of EPS contribution in the PF account exceeding the current wage limit of Rs.6,500 or Rs.5,000.
- Written refusal of APFC or EPFO to such remittance or request.
The following documents should be submitted with the joint option application:
- Proof of remittance of EPS contribution in the PF account exceeding the current wage limit of Rs.6,500 or Rs.5,000.
- Proof of joint option verified by the employer filed under para 26(6) of the EPF scheme.
The EPFO will issue further circulars regarding the deposit method and pension computation.
An employee can raise a complaint on EPFiGMS when they face a grievance to get a higher pension after submitting the application and payment of the due contribution if any.

EPF higher pension calculation formula

Calculation of higher pension for employees retired before 2014:

The average monthly pay earned during the contributory period of service in the 12 months before leaving EPFO is considered to determine the pension amount.

Calculation of higher pension for employees 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 determine the pension amount.

Current formula for calculating pension under the EPS scheme is as follows:

(Average salary of 60 months x service period)/70

epf pension calculator

Latest Update

Employees Pension Scheme 1995 amended to provide withdrawal benefit to members having less than 6 months service; Amendment to benefit more than 7 lakh EPS members every year

More than 30 lakh withdrawal benefit claims were settled in the financial year 2023-24.

Till now, the withdrawal benefit was being calculated on the basis of the period of contributory service in completed years and the wages on which EPS contribution has been paid.

Higher pension contribution under EPS-95

Thus, employers would make an EPS contribution of 8.33% on a maximum of Rs.15,000 for the employees joining the EPF scheme after 01/09/2014, even when they draw a higher salary.

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 on 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 exercised joint option	No	Not applicable

For example:

Mr. ‘X’ became a member of the EPF in 1998.
He has not exercised the joint option.
His salary increased to Rs.50,000 in 2015.
His employer contributes Rs.6,000 (i.e. 12% of his basic wage) towards EPF.
Of the employer’s contribution, Rs.1,250 (i.e. 8.33% of Rs.15,000; the statutory wage cap) will go to the EPS.
The remaining Rs.4,750 (i.e. Rs.6,000 – Rs.1,250) will go to the EPF.
He exercises the joint option within 11/07/2023 as per the Supreme Court judgement since the EPS contribution is above the statutory wage cap of Rs.6,500.
After submitting the joint option, his employer will contribute Rs.4,165 (i.e. 8.33% of Rs.50,000; his actual salary) and Rs.1,835 (Rs.6,000 – Rs.4,165) towards EPF.
The EPFO will calculate the monthly EPS amount of 8.33% of the actual salary and transfer the difference amount from the EPF to the EPS.

How to track EPFO higher pension application status?

You can check the status of the EPFO higher pension application by following the below steps:

Step 1: Visit the EPFO Unified Member portal.

Step 2: Click on the ‘Track Application Status for Pension on Higher Wages’.

Step 3: On the next page, click on ‘Click Here’ under the ‘Track application status for Pension on Higher Wages’ tab.

Step 4: Select and enter the application acknowledgement number, UAN number or PPO number.

Step 5: Enter the Captcha code, tick the consent and click on the ‘Get OTP’ button.

Step 6: Enter the OTP and click on ‘Get Status’. The application status will be displayed on the screen.

EPF higher pension eligibility

EPFO issued a circular in December 2022 providing the eligibility criteria and application process for claiming a higher pension. Below are the eligibility criteria for a higher pension:

The employees retired before 01/09/2014.
The employees exercised the joint option under para 11(3) of EPS-95 while being a member of EPS-95.
The employees and employers contributed EPS on salaries exceeding the wage ceiling of Rs.5,000 or Rs.6,500.
The EPFO declined the exercise of such an option.

The employees who were members before 01/09/2014 continued to be members after that date.
The employees and employers contributed to EPS on salaries exceeding the wage ceiling of Rs.5,000 or Rs.6,500.
The employees and employers were members of EPS-95 and did not exercise the joint option provided under the deleted para 11(3) of the EPS and amendment of 2014.

EPF higher pension option form

How to apply for a higher pension in EPF?

Below is the step to claim a higher pension amount for employees retired before 2014:

Step 1: Employees need to visit the EPFO Unified Member portal.

Step 2: Click on the ‘Pension on Higher Salary: Online application for validation of Joint Option’ option.

Step 3: Fill in the details and submit the form.

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

Below is the step to exercise/apply for joint option under para 11(3) and para 11(4) of EPS-95 to claim for higher pension for employees who are part of EPS-95 but are working or retired after 2014:

Step 1: Employees need to visit the EPFO Unified Member portal.

Step 2: 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.

Step 3: Fill in the details and submit the form.

EPFO guidelines for higher pension

The joint option/higher pension claim application should contain a disclaimer or declaration.
An employee should give explicit consent in the joint option/application form for a share adjustment from PF to EPS and a re-deposit of the amount.
An employee should give an undertaking of the trustee for a share transfer of funds from exempted PF trust to the EPFO pension fund. 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.
The following documents should be submitted with the higher pension claim application:
- Proof of joint option verified by the employer filed under para 26(6) of the EPF scheme.
- Proof of joint option verified by the employer filed under para 11(3) provision.
- Proof of remittance of EPS contribution in the PF account exceeding the current wage limit of Rs.6,500 or Rs.5,000.
- Written refusal of APFC or EPFO to such remittance or request.
The following documents should be submitted with the joint option application:
- Proof of remittance of EPS contribution in the PF account exceeding the current wage limit of Rs.6,500 or Rs.5,000.
- Proof of joint option verified by the employer filed under para 26(6) of the EPF scheme.
The EPFO will issue further circulars regarding the deposit method and pension computation.
An employee can raise a complaint on EPFiGMS when they face a grievance to get a higher pension after submitting the application and payment of the due contribution if any.

EPF higher pension calculation formula

Calculation of higher pension for employees retired before 2014:

The average monthly pay earned during the contributory period of service in the 12 months before leaving EPFO is considered to determine the pension amount.

Calculation of higher pension for employees 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 determine the pension amount.

Current formula for calculating pension under the EPS scheme is as follows:

(Average salary of 60 months x service period)/70

epf pension calculator

Latest Update

Employees Pension Scheme 1995 amended to provide withdrawal benefit to members having less than 6 months service; Amendment to benefit more than 7 lakh EPS members every year

More than 30 lakh withdrawal benefit claims were settled in the financial year 2023-24.

Till now, the withdrawal benefit was being calculated on the basis of the period of contributory service in completed years and the wages on which EPS contribution has been paid.

Higher pension contribution under EPS-95

Thus, employers would make an EPS contribution of 8.33% on a maximum of Rs.15,000 for the employees joining the EPF scheme after 01/09/2014, even when they draw a higher salary.

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 on 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 exercised joint option	No	Not applicable

For example:

Mr. ‘X’ became a member of the EPF in 1998.
He has not exercised the joint option.
His salary increased to Rs.50,000 in 2015.
His employer contributes Rs.6,000 (i.e. 12% of his basic wage) towards EPF.
Of the employer’s contribution, Rs.1,250 (i.e. 8.33% of Rs.15,000; the statutory wage cap) will go to the EPS.
The remaining Rs.4,750 (i.e. Rs.6,000 – Rs.1,250) will go to the EPF.
He exercises the joint option within 11/07/2023 as per the Supreme Court judgement since the EPS contribution is above the statutory wage cap of Rs.6,500.
After submitting the joint option, his employer will contribute Rs.4,165 (i.e. 8.33% of Rs.50,000; his actual salary) and Rs.1,835 (Rs.6,000 – Rs.4,165) towards EPF.
The EPFO will calculate the monthly EPS amount of 8.33% of the actual salary and transfer the difference amount from the EPF to the EPS.

How to track EPFO higher pension application status?

You can check the status of the EPFO higher pension application by following the below steps:

Step 1: Visit the EPFO Unified Member portal.

Step 2: Click on the ‘Track Application Status for Pension on Higher Wages’.

Step 3: On the next page, click on ‘Click Here’ under the ‘Track application status for Pension on Higher Wages’ tab.

Step 4: Select and enter the application acknowledgement number, UAN number or PPO number.

Step 5: Enter the Captcha code, tick the consent and click on the ‘Get OTP’ button.

Step 6: Enter the OTP and click on ‘Get Status’. The application status will be displayed on the screen.

EPF higher pension eligibility

EPFO issued a circular in December 2022 providing the eligibility criteria and application process for claiming a higher pension. Below are the eligibility criteria for a higher pension:

The employees retired before 01/09/2014.
The employees exercised the joint option under para 11(3) of EPS-95 while being a member of EPS-95.
The employees and employers contributed EPS on salaries exceeding the wage ceiling of Rs.5,000 or Rs.6,500.
The EPFO declined the exercise of such an option.

The employees who were members before 01/09/2014 continued to be members after that date.
The employees and employers contributed to EPS on salaries exceeding the wage ceiling of Rs.5,000 or Rs.6,500.
The employees and employers were members of EPS-95 and did not exercise the joint option provided under the deleted para 11(3) of the EPS and amendment of 2014.

EPF higher pension option form

How to apply for a higher pension in EPF?

Below is the step to claim a higher pension amount for employees retired before 2014:

Step 1: Employees need to visit the EPFO Unified Member portal.

Step 2: Click on the ‘Pension on Higher Salary: Online application for validation of Joint Option’ option.

Step 3: Fill in the details and submit the form.

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

Below is the step to exercise/apply for joint option under para 11(3) and para 11(4) of EPS-95 to claim for higher pension for employees who are part of EPS-95 but are working or retired after 2014:

Step 1: Employees need to visit the EPFO Unified Member portal.

Step 2: 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.

Step 3: Fill in the details and submit the form.

EPFO guidelines for higher pension

The joint option/higher pension claim application should contain a disclaimer or declaration.
An employee should give explicit consent in the joint option/application form for a share adjustment from PF to EPS and a re-deposit of the amount.
An employee should give an undertaking of the trustee for a share transfer of funds from exempted PF trust to the EPFO pension fund. 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.
The following documents should be submitted with the higher pension claim application:
- Proof of joint option verified by the employer filed under para 26(6) of the EPF scheme.
- Proof of joint option verified by the employer filed under para 11(3) provision.
- Proof of remittance of EPS contribution in the PF account exceeding the current wage limit of Rs.6,500 or Rs.5,000.
- Written refusal of APFC or EPFO to such remittance or request.
The following documents should be submitted with the joint option application:
- Proof of remittance of EPS contribution in the PF account exceeding the current wage limit of Rs.6,500 or Rs.5,000.
- Proof of joint option verified by the employer filed under para 26(6) of the EPF scheme.
The EPFO will issue further circulars regarding the deposit method and pension computation.
An employee can raise a complaint on EPFiGMS when they face a grievance to get a higher pension after submitting the application and payment of the due contribution if any.

EPF higher pension calculation formula

Calculation of higher pension for employees retired before 2014:

The average monthly pay earned during the contributory period of service in the 12 months before leaving EPFO is considered to determine the pension amount.

Calculation of higher pension for employees 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 determine the pension amount.

Current formula for calculating pension under the EPS scheme is as follows:

(Average salary of 60 months x service period)/70

epf pension calculator

Latest Update

Employees Pension Scheme 1995 amended to provide withdrawal benefit to members having less than 6 months service; Amendment to benefit more than 7 lakh EPS members every year

More than 30 lakh withdrawal benefit claims were settled in the financial year 2023-24.

Till now, the withdrawal benefit was being calculated on the basis of the period of contributory service in completed years and the wages on which EPS contribution has been paid.

EPFO Auto Settlement Limit Hiked to ₹5 Lakh

Auto-Settlement in EPFO : The Employees’ Provident Fund Organisation (EPFO) has recently revised its auto-settlement threshold for PF claims, increasing it from ₹50,000 to a substantial ₹5 lakh. This major update aims to fast-track claims for millions of employees without the need for manual intervention. The change is expected to reduce processing delays, improve fund accessibility, and benefit crores of EPF account holders across the country.

This article will explore what this new rule means, who benefits, how it works, and what you should do next if you are planning a withdrawal.

What Is Auto-Settlement in EPFO?

Auto-settlement in the EPFO system refers to the automatic processing and approval of eligible provident fund claims without human involvement. This system uses algorithms and digital verification tools to process claims faster, ensuring that employees get their money quickly.

Key Highlights:

No human intervention required in processing.
Claim processed digitally if KYC and other details are verified.
Now available for claims up to ₹5 lakh (earlier limit: ₹50,000).

Why Has the Limit Been Raised?

Raising the auto-settlement limit is part of EPFO’s ongoing digital transformation. The increase from ₹50,000 to ₹5 lakh reflects the government’s commitment to improving ease of access to social security funds, especially after the pandemic, when many workers needed urgent access to their PF savings.

To reduce claim processing time.
To enhance digital efficiency and reduce manual workload.
To help more employees access their savings without delay.
To ensure faster financial aid during emergencies or job loss.

Who Can Benefit from the ₹5 Lakh Auto-Settlement Limit?

This update is particularly beneficial for salaried employees and those working in the private sector who rely on their EPF funds during times of need such as unemployment, emergencies, or retirement.

Eligibility Criteria:

EPF account must be fully KYC-compliant (Aadhaar, PAN, bank details).
UAN should be active and linked.
Claim type should fall under permissible auto-settlement categories (e.g., final settlement, advance under specific clauses).
The amount claimed should not exceed ₹5 lakh.

Major Changes in EPFO Auto-Settlement System

Below is a comparison table showing the change in EPFO auto-settlement limits and related updates:

Feature	Previous Provision	Updated Provision (2025)
Auto-settlement limit	₹50,000	₹5,00,000
Human involvement	Required above ₹50,000	Not required up to ₹5 lakh
Processing time	7–20 working days	3–7 working days
Document verification	Manual for higher claims	Fully digital up to ₹5 lakh
Beneficiaries	Limited	Wider coverage, more inclusive
Claim modes	Mostly manual	Digital and app-based enabled
Ease of use	Moderate	Highly user-friendly

How to File an Auto-Settled EPF Claim?

Filing for an auto-settled EPF claim is simple if your Universal Account Number (UAN) is KYC-compliant. Here’s a step-by-step overview:

Step-by-Step Process:

Log in to the EPFO member portal (https://unifiedportal-mem.epfindia.gov.in/).
Navigate to “Online Services” and select “Claim (Form-31, 19 & 10C).”
Verify KYC details (Aadhaar, PAN, bank account).
Enter the claim reason and the amount (ensure it is ₹5 lakh or below).
Submit the claim form digitally.
Track status under “View Claim Status” tab.

Common Reasons for Withdrawal:

Retirement or resignation.
Marriage, education, or house purchase.
Medical emergencies.
Unemployment for more than one month.

Benefits of EPFO Auto-Settlement

The increase in the auto-settlement limit brings multiple advantages to EPF members:

Faster claim processing without paperwork.
Reduced dependency on employer verification in many cases.
Convenient online access to funds.
Transparency in claim tracking and real-time updates.
Encourages more users to adopt digital claims.

FAQs on EPFO ₹5 Lakh Auto-Settlement Limit

Question	Answer
Is the ₹5 lakh auto-settlement applicable to all?	Only to those with full KYC compliance and eligible claim types.
What happens if my claim is more than ₹5 lakh?	It will be manually processed by EPFO officials.
Can I withdraw partial EPF using auto-settlement?	Yes, if the amount is within the ₹5 lakh limit and the reason is valid.
How long does the claim take now?	Typically 3–7 working days if eligible for auto-settlement.
Do I need employer approval for auto-settlement?	Not always. Many claim types are now processed directly by EPFO.
Is pension withdrawal included in this?	No, pension claims still follow a separate approval process.
Will I be notified about my claim status?	Yes, via SMS and the EPFO portal.

What EPFO Members Should Do Now

If you’re an EPF subscriber planning to make a claim in the near future, this is a great opportunity to take advantage of the new limit. Ensure your account is fully updated and linked with all necessary KYC documents.

Immediate Actions to Take:

Update Aadhaar, PAN, and bank details on EPFO portal.
Link your UAN with mobile number and Aadhaar.
Familiarize yourself with the online claim filing process.
Monitor claim updates regularly on the portal.

The revision of the EPFO auto-settlement limit to ₹5 lakh is a big step toward empowering employees with easier access to their hard-earned savings. This move aligns with India’s larger digital inclusion and e-governance initiatives. With faster processing and reduced dependency on manual checks, this update will certainly benefit millions across the country.

Make sure your EPFO profile is up to date, and if you’re planning to file a claim, you might just get your money faster and with fewer hassles than ever before.

EPFO pension hike Rs 9000 increase for members ahead

EPFO pension hike: The pensioners of the Employees Provident Fund Organisation (EPFO) in Maharashtra protested for a pension hike. The founder president of the Nashik District EPFO Pensioners Federation Raju Desle led the protest. Also, the EPFO pensioners protested to increase the pension amount to Rs 9,000 from the previous amount.

EPFO pension hike: The pensioners of the Employees Provident Fund Organisation (EPFO ) in Maharashtra protested for a pension hike. On Tuesday, EPFO pensioners staged a demonstration outside the local office in Satpur area pressing for their demands.

The founder president of the Nashik District EPFO Pensioners Federation Raju Desle led the protest. The EPFO pensioners protested to increase the pension amount to Rs 9,000 from Rs 1000. As per the protestors, this sum would better reflect their years of contribution.

Additionally, the protestors also demanded essential support including dearness allowance to combat the increasing cost of living, free govt medical services, and inclusion in the food safety act.

EPFO’s private sector employees have long been demanding an increase in their minimum pension, which has remained Rs 1,000 per month since 2014.

It has been around 8 years since pensioners have been demanding a raise in the minimum pension from Rs 1,000 to Rs 7,500, along with DA benefits and free medical treatment for both retirees and their spouses.

EPF members contribute 12 per cent of their basic salary towards the provident fund, and employers match this contribution. 8.33 per cent is allocated to the Employees’ Pension Scheme (EPS) from themployer’s share. On the other hand, 3.67 per cent goes towards the EPF scheme.

EPFO Minimum Pension Increase 2025

A delegation of EPS-95 retirees met Finance Minister Nirmala Sitharaman to press for their long-standing demand of a minimum pension of Rs 7,500 per month plus dearness allowance (DA) before Union Budget 2025 announcement.

The EPS-95 National Agitation Committee however stated that the finance minister assured them that their demands would be considered with sympathy. The pensioners and advocacy groups have criticised the inadequacy of the current pension scheme for several years.

They have argued that the Rs 1,000 monthly pension is insufficient, especially for those who have spent around four decades contributing to the fund. Moreover, with increasing inflation and medical expenses, the pressure is mounting for the government to address these demands.

EPF Big Update: Change Name & Personal Details Online Without Employer Approval

EPF Update: Modify Your Name & Personal Information Online Without Need for Employer Approval

The Employees’ Provident Fund Organization (EPFO) has implemented significant changes aimed at simplifying the process of updating personal information for its members. These updates are particularly advantageous for individuals whose Universal Account Numbers (UAN) are linked to their Aadhaar, as they can now make changes without needing employer approval or an extensive document submission process.

What is EPFO and UAN?

The EPFO is an authority under the Ministry of Labour and Employment that oversees the provident fund contributions for the Indian workforce. Each member is assigned a Universal Account Number (UAN), which uniquely identifies individuals and consolidates multiple Member Identification Numbers (Member IDs) that may have been allocated by different organizations. The UAN serves as a central point for managing various provident fund accounts.

Previous Method for Updating Personal Information

Members wishing to amend or update their personal details—like name, date of birth, or gender—previously faced a tedious procedure:

Joint Declaration Submission: Members needed to complete a Joint Declaration Form, endorsed by both the employee and employer, outlining the necessary changes.
Employer Verification: The employer was responsible for verifying the information and forwarding the request to EPFO for approval.
Documentation Requirements: Members had to provide identity proof and other documents to substantiate the requested modifications.

This traditional approach often resulted in delays, with the approval process taking up to 28 days, leading to frustration among members.

New Streamlined Process for Aadhaar-Linked UANs

To improve efficiency, the EPFO has updated its protocols for members whose UANs are linked and authenticated with their Aadhaar information:

Self-Approval Option: Members can now independently alter their personal details—including name, date of birth, gender, nationality, parent’s names, marital status, spouse’s name, and dates of joining and leaving—via the EPFO portal without needing verification or approval from their employer or EPFO.
No Need for Supporting Documents: For UANs that are Aadhaar-validated, there is no longer any requirement to upload additional documentation. The Aadhaar link alone suffices for validation.

Advantages of the Enhanced Process

The revised protocol provides multiple benefits:

Quicker Processing Times: Bypassing employer involvement and document requirements significantly accelerates the update process, allowing for swifter modifications to member profiles.
Increased Member Control: Members gain more authority over their personal data, enhancing the accuracy and transparency of their EPFO records.
Improved Administrative Efficiency: Reduced employer participation lightens the administrative load, allowing employers to concentrate on other vital aspects of their work.

Steps to Amend Personal Information Online

Members with Aadhaar-linked UANs can follow these simple steps to update their personal data:

Access the EPFO Member Portal: Go to the EPFO Unified Member Portal and log in using your UAN and password.
Locate Profile Settings: After logging in, select the ‘Manage’ tab and then choose ‘Modify Basic Details’ from the menu.
Input New Information: Enter the updated information in the appropriate fields requiring changes.
Submit Your Request: Double-check the information for accuracy and submit your request. Since your UAN is linked to Aadhaar, no further documentation or approvals are required.

Guidance for Non-Aadhaar Linked UANs

Members whose UANs are not linked to Aadhaar should be aware of the following:

Traditional Process Still Applicable: The older method involving the submission of a Joint Declaration Form through the employer, along with supporting documents, remains in effect.
Recommendation to Link Aadhaar: To take advantage of the simplified process, members are encouraged to connect their Aadhaar with their UAN. This linkage facilitates easier updates and ensures better access to various EPFO services.

Refer to my previous posts for more information.

Effect on Pending Requests

According to EPFO data, out of around 800,000 correction requests received in the financial year 2024-25, nearly 45% can now be self-approved by members without the need for employer verification. This change is anticipated to eliminate delays and enhance the update process.

Higher pension contribution under EPS-95

Thus, employers would make an EPS contribution of 8.33% on a maximum of Rs.15,000 for the employees joining the EPF scheme after 01/09/2014, even when they draw a higher salary.

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 on 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 exercised joint option	No	Not applicable

For example:

Mr. ‘X’ became a member of the EPF in 1998.
He has not exercised the joint option.
His salary increased to Rs.50,000 in 2015.
His employer contributes Rs.6,000 (i.e. 12% of his basic wage) towards EPF.
Of the employer’s contribution, Rs.1,250 (i.e. 8.33% of Rs.15,000; the statutory wage cap) will go to the EPS.
The remaining Rs.4,750 (i.e. Rs.6,000 – Rs.1,250) will go to the EPF.
He exercises the joint option within 11/07/2023 as per the Supreme Court judgement since the EPS contribution is above the statutory wage cap of Rs.6,500.
After submitting the joint option, his employer will contribute Rs.4,165 (i.e. 8.33% of Rs.50,000; his actual salary) and Rs.1,835 (Rs.6,000 – Rs.4,165) towards EPF.
The EPFO will calculate the monthly EPS amount of 8.33% of the actual salary and transfer the difference amount from the EPF to the EPS.

How to track EPFO higher pension application status?

You can check the status of the EPFO higher pension application by following the below steps:

Step 1: Visit the EPFO Unified Member portal.

Step 2: Click on the ‘Track Application Status for Pension on Higher Wages’.

Step 3: On the next page, click on ‘Click Here’ under the ‘Track application status for Pension on Higher Wages’ tab.

Step 4: Select and enter the application acknowledgement number, UAN number or PPO number.

Step 5: Enter the Captcha code, tick the consent and click on the ‘Get OTP’ button.

Step 6: Enter the OTP and click on ‘Get Status’. The application status will be displayed on the screen.

EPF higher pension eligibility

EPFO issued a circular in December 2022 providing the eligibility criteria and application process for claiming a higher pension. Below are the eligibility criteria for a higher pension:

The employees retired before 01/09/2014.
The employees exercised the joint option under para 11(3) of EPS-95 while being a member of EPS-95.
The employees and employers contributed EPS on salaries exceeding the wage ceiling of Rs.5,000 or Rs.6,500.
The EPFO declined the exercise of such an option.

The employees who were members before 01/09/2014 continued to be members after that date.
The employees and employers contributed to EPS on salaries exceeding the wage ceiling of Rs.5,000 or Rs.6,500.
The employees and employers were members of EPS-95 and did not exercise the joint option provided under the deleted para 11(3) of the EPS and amendment of 2014.

EPF higher pension option form

How to apply for a higher pension in EPF?

Below is the step to claim a higher pension amount for employees retired before 2014:

Step 1: Employees need to visit the EPFO Unified Member portal.

Step 2: Click on the ‘Pension on Higher Salary: Online application for validation of Joint Option’ option.

Step 3: Fill in the details and submit the form.

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

Below is the step to exercise/apply for joint option under para 11(3) and para 11(4) of EPS-95 to claim for higher pension for employees who are part of EPS-95 but are working or retired after 2014:

Step 1: Employees need to visit the EPFO Unified Member portal.

Step 2: 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.

Step 3: Fill in the details and submit the form.

EPFO guidelines for higher pension

The joint option/higher pension claim application should contain a disclaimer or declaration.
An employee should give explicit consent in the joint option/application form for a share adjustment from PF to EPS and a re-deposit of the amount.
An employee should give an undertaking of the trustee for a share transfer of funds from exempted PF trust to the EPFO pension fund. 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.
The following documents should be submitted with the higher pension claim application:
- Proof of joint option verified by the employer filed under para 26(6) of the EPF scheme.
- Proof of joint option verified by the employer filed under para 11(3) provision.
- Proof of remittance of EPS contribution in the PF account exceeding the current wage limit of Rs.6,500 or Rs.5,000.
- Written refusal of APFC or EPFO to such remittance or request.
The following documents should be submitted with the joint option application:
- Proof of remittance of EPS contribution in the PF account exceeding the current wage limit of Rs.6,500 or Rs.5,000.
- Proof of joint option verified by the employer filed under para 26(6) of the EPF scheme.
The EPFO will issue further circulars regarding the deposit method and pension computation.
An employee can raise a complaint on EPFiGMS when they face a grievance to get a higher pension after submitting the application and payment of the due contribution if any.

EPF higher pension calculation formula

Calculation of higher pension for employees retired before 2014:

The average monthly pay earned during the contributory period of service in the 12 months before leaving EPFO is considered to determine the pension amount.

Calculation of higher pension for employees 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 determine the pension amount.

Current formula for calculating pension under the EPS scheme is as follows:

(Average salary of 60 months x service period)/70

epf pension calculator

Latest Update

Employees Pension Scheme 1995 amended to provide withdrawal benefit to members having less than 6 months service; Amendment to benefit more than 7 lakh EPS members every year

More than 30 lakh withdrawal benefit claims were settled in the financial year 2023-24.

Till now, the withdrawal benefit was being calculated on the basis of the period of contributory service in completed years and the wages on which EPS contribution has been paid.

EPFO Settles 25 Lakh Advance Claims in Auto Mode: June 2024 Update

Employees Provident Fund Organisation (EPFO) has settled about 25 lakh advance claims in auto mode, the Ministry of Labour and Employment said in an official release on Friday, June 14.

To speed up the claim process, EPFO has implemented auto settlement of advances up to ₹1 lakh for education, illness, housing, and marriage. Out of the 25 lakh claims settled in auto mode, more than 50% have been for illness. The government said most of the claims are now being settled within three days.

The disclosure was made during a review meeting on reforms in EPFO chaired by Sumita Dawra, Secretary, Ministry of Labour and Employment. Neelam Shami Rao, Central Provident Fund Commissioner (CPFC), and other senior officers of the Labour Ministry and EPFO attended the meeting.

The cheque book/passbook of bank account upload for the KYC Aadhaar linked accounts of members have been dispensed with, thus eliminating the scrutiny requirement in almost 13 lakh claims in the last month. EPFO has also reduced and rationalised the remarks for easy comprehension of the members for return of incomplete cases and rejection of ineligible cases,” the government said.

The number of auto transfers generated also surged threefold from two lakh in April 2024 to six lakh in May 2024. Dawra advised EPF to continue the proactive steps for systemic reforms.

EPFO is also overhauling its application with the universal account number (UAN) based single accounting system for every member and automating process flow with the least human intervention for faster claim settlement. The Centre for Development of Advanced Computing (CDAC) is providing consultation for the new software.

The review meeting emphasised the need to expand social security and new initiatives to facilitate living and business.

Easy Ways to Check Your EPF Account Balance: EPFO Portal, UMANG App, and More

Login Proceedure to PF Account

how to log in to your UAN account:

Visit the EPFO Portal
Go to the official EPFO website (https://www.epfindia.gov.in/).
Navigate to the UAN Member e-Sewa: Click on the ‘For Employees’ section under the ‘Our Services’ tab
Then select the ‘Member UAN/Online Service (OCS/OTCP)’ option.
Login Page: You will be redirected to the UAN Member e-Sewa portal.
Enter your UAN, password, and captcha code, then click on the ‘Sign in’ button.
Dashboard Access: Upon successful login, you will have access to your EPF account dashboard.
You can view your EPF balance, download your passbook, and update your KYC details, including your Aadhaar card information.

How to check EPF balance

The Employees’ Provident Fund Organisation (EPFO) sets the interest rate for provident fund deposits annually. In February 2024, the EPFO announced an interest rate of 8.25% for the financial year 2023-24, up from 8.15% for the previous year.

EPF members can use any of the following four methods to check their account balance:

A. EPFO Portal

Visit the EPFO website
Go to the “Employee” section.
Click on “Member Passbook.”
Enter your UAN and password to access your passbook and check your balance.

B. UMANG app

1. Download and install the UMANG app.

2. Register using your mobile number.

3. Select “EPFO” from the available options.

4. Click on “View Passbook.”

5. Enter your Universal Account Number (UAN) and request an OTP.

6. Enter the OTP and click “Login” to view your passbook and balance.

C. Missed Calls

Registered UAN holders can give a missed call to 011-22901406.
You will receive an SMS with your latest EPF balance.

SMS

Send “EPFOHO UAN ENG” to 7738299899 to get your EPF balance via SMS.
For other languages, replace “ENG” with the first three letters of the language.

Disclaimer: Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.

EPF Rule Change: Claim up to ₹1 Lakh for Medical Treatment Through Form 31

EPF rule change: Now you can claim partial withdrawal up to ₹1 lakh for medical treatment

Employees’ Provident Fund Organisation (EPFO) has ordered to enhance the existing eligibility limit of 68J claims for withdrawal from ₹50,000 to ₹1 lakh now.

The announcement was made via a circular issued by the EPFO on April 16.

The pension fund body has also made the changes in the application software on April 10, 2024. This has already received a green signal from the Central Provident Fund Commissioner (CPFC), the EPFO circular informs.

The EPF partial withdrawal is allowed through form 31 for a number of purposes. These purposes range from marriage to repayment of loans, and purchase of flat to construction of house, among others.

Under para 68J — with respect to which the threshold has just been raised — advances from the Employees’ provident fund (EPF) account can be claimed for the treatment of illness of subscriber or the family member.

Subject to the limit of ₹one lakh, subscribers are authorised to claim for withdrawal of 6 months’ basic wages and DA (or employee share with interest) whichever is lower.

Along with form 31, subscribers also need to submit certificate C signed by an employee as well as by a doctor.

What is form 31?

The EPF form 31 is submitted to file a claim for partial withdrawal of funds from Employees Provident Fund Account.

Through form 31, one can apply for withdrawal for purchase of house/flat, construction of house including acquisition of site under para 68B; for repayment of loan in special cases under para 68BB; grant of advances in special cases under para 68H, advance for illness under para 68J; for marriages or post matriculation education of children under para 68K and grant of advance to members who are physically challenged under para 68N and withdrawal within one year before retirement under para 68NN.

What is para 68J under which the limit has been raised?

As mentioned above, para 68J is meant for withdrawal from the EPF account for the treatment of illness of a subscriber or for the family member.

In other news, EPFO recently enabled automatic transfer of EPF account balance from one job to another. One can read this article to know more about the details.

NEW EPFO RULE: AUTOMATIC PF TRANSFER FOR JOB CHANGERS

Automatic PF Transfer on Job Change With the latest EPFO update, your PF balance now follows you effortlessly. Changing jobs? Your PF moves with you, automatically!

UAN: Your Financial Passport

Your Universal Account Number (UAN) is now more powerful than ever, ensuring all your EPF accounts are unified under a single umbrella for ease of access and transfer.

Benefits of the New System

No more tedious paperwork or waiting periods for PF transfers. Enjoy the freedom of mobility in your career with zero worries about your provident fund.

A Leap Towards Hassle-Free Savings

Ashish Aggarwal of Acube Ventures highlights how this reform is a step forward in empowering employees, making retirement savings secure and seamless.

EPFO’s Contribution Structure

Both you and your employer contribute 12% of your basic monthly salary to your EPF. It’s a partnership towards a secure financial future.

The Growth of EPFO Members

A whopping 16.02 lakh members joined the EPFO family in January 2024 alone. The journey towards a prosperous retirement continues to accelerate!

How UAN Facilitates PF Transfer

From automatic transfer requests to updated PF passbooks, UAN is your one-stop solution for managing your Provident Funds efficiently.

What Is Required for PF Withdrawal Online?

You may need quick access to these funds in situations such as hospitalisation, wedding or education of your child, home renovation, and repairs. Instead of taking a loan, you can withdraw funds from your PF in whole or in part. Remember that you will have to keep UAN handy to initiate the PF withdrawal process.

To withdraw your PF amount using the EPFO portal, you will need to ensure the following:

UAN
Aadhaar number must be linked and verified with UAN
The bank account where you want to receive the amount must be the same as the bank account registered with your Aadhaar
In case of any changes or modifications, you can complete the eKYC process and update your details before you submit a claim

How To Withdraw PF Amount

A. Physical Application

Download Composite Claim Form (Aadhaar/ Non- Aadhaar) to withdraw your EPF balance

1. Composite Claim Form (Aadhaar)

If your Aadhaar and bank details are linked on the UAN portal and your UAN is active, use the Composite Claim Form (Aadhaar).
You can fill and submit the form directly to the EPFO office without requiring attestation from your employer.

2. Composite Claim Form (Non-Aadhaar)

If your Aadhaar and bank details are not linked on the UAN portal, opt for the Composite Claim Form (Non-Aadhaar).
Complete the form and submit it, along with your employer’s attestation, to the EPFO office

B. Online Application

The EPFO introduced an online withdrawal option, simplifying the entire process and saves time.

Prerequisites

Activate the Universal Account Number (UAN), and confirm the mobile number used for UAN activation is operational.
Your UAN is linked with your KYC (Aadhaar, PAN, etc.)

How to Withdraw PF Amount with UAN?

You can easily withdraw your PF online through your UAN by visiting the EPFO e-SEWA portal. Here are the steps you need to follow:

Log in to the portal – Visit the EPFO e-SEWA portal, log in using your UAN and password, and enter the captcha code. In case you have forgotten your password, you can reset it via an OTP sent to your registered mobile number.
Visit the online claims section – When you’ve logged in, you can look for ‘claim (Form-31, 19, 10C & 10D)’ in the ‘online services’ section.
Enter bank account details – Once this section opens, you will be required to enter the correct bank account number (seeded with UAN) as a verification process.
Confirm terms & conditions – Once you have verified your details, you need to confirm the Terms and Conditions stated by EPFO. You can then click on ‘proceed for online claim.’

Select reason for withdrawal – You will find a dropdown menu, from which you would need to choose the reason for withdrawing from your PF account. You will only be shown the options for which you are eligible.
Enter details and upload documents – When you select the reason for withdrawal, you would need to enter your complete address, and you may need to upload your cheque/passbook details if you’ve chosen the option for ‘Advance Claim. You’ll need to accept further ‘Terms and Conditions’ before requesting a one-time password (OTP) for verification.
Get Aadhaar OTP – Once you have confirmed your details and accepted the terms and conditions, you would need to request an OTP, which will be sent to the mobile number registered with your Aadhaar. Upon entering the OTP, your claim application will be submitted.

Once you have submitted your PF claim, you can track your claims status by logging into your member e-SEWA portal account under track claim status. The EPFO officials will match your data in their records with the data submitted in your online claim form. On completing their verification, they will process your claim application, and the amount will be credited to the bank account linked with your UAN.

Steps to Apply for EPF Withdrawal Online on UAN Portal

Applying for PF withdrawal online via the UAN portal is convenient. Follow these steps:

Step 1: Go to the UAN portal.

Step 2: Log in using your UAN and password. Enter the captcha and click on the ‘Sign In’ button.

Step 3: Select the ‘Manage’ tab and select ‘KYC’ to verify your KYC details are verified or not.

Step 4: After KYC details are verified, select ‘Online Services‘ tab and choose ‘Claim (Form-31, 19 10C & 10D)’ from the drop-down menu.

Step 5: After that, enter your bank account number and click on ‘Verify.

Step 6: Click on ‘Yes’ to sign the undertaking certificate.

Step 7: Now, click on ‘Proceed for Online Claim’.

Step 8: In the claim form, select the desired claim, such as full EPF settlement, EPF part withdrawal (loan/advance), or pension withdrawal, under the tab ‘I Want To Apply For’. If the member is ineligible for any service, it won’t appear in the drop-down menu.

Step 9: Next, choose ‘PF Advance (Form 31)’ to withdraw your fund. Provide the purpose of the withdrawal, the required amount, and the employee’s address.

Step 10: Click on the “certificate,” submit your application.

New EPF Withdrawal Rules 2024

Here are ten essential guidelines regarding EPF withdrawal:

Unlike a bank account, you cannot withdraw funds from your EPF account while employed. EPF is designed for long-term retirement savings, and withdrawals are only allowed after retirement.
In the case of emergencies such as medical expenses, home purchase or construction, and higher education, partial withdrawals from EPF accounts are permitted. The withdrawal limits depend on the specific reason, and account holders can apply for partial withdrawals online.
Early retirement is not recognised until the individual reaches the age of 55. However, the EPFO allows a person who is at least 54 years old to withdraw 90% of their EPF savings one year before retirement.

If an individual faces unemployment due to reasons like lockdown or retrenchment before retirement, they can withdraw their EPF corpus.
To withdraw the EPF amount, the person must declare their unemployment.
According to the new rule, the EPFO permits the withdrawal of 75% of the EPF savings after one month of unemployment. The remaining 25% can be transferred to a new EPF account once new employment is secured.
Under the old rule, 100% EPF withdrawal is allowed after two months of unemployment.
EPF corpus withdrawal is tax-exempt under specific conditions. Tax exemption is applicable if an employee has consistently contributed to the EPF account for five years. If there is a gap in contributions for five continuous years, the entire EPF amount becomes taxable income for that financial year.

Tax is deducted at the source when withdrawing the EPF corpus prematurely. However, if the total amount is less than Rs. 50,000, no TDS is applied. It’s important to note that if an employee provides their PAN with the application, the applicable TDS rate is 10%; otherwise, it is 30% plus tax. Form 15H/15G is a declaration form stating that a person’s total income is not taxable, allowing them to avoid TDS.
Employees no longer need to wait for approval from their employer for PF withdrawal. They can apply directly through the EPFO, provided their UAN and Aadhaar are linked, and the employer has given their approval. The status of EPF withdrawal can be checked online.

EPFO Latest Update FAQ: Delay in updating of interest in the member passbook?

EPFO FAQ: Delay in updating of interest in the member passbook?

Is there any financial loss to EPF members due to thedelay in updating of interest in the member passbook?

Updating of member passbook with interest is an entry process.The date on which the interest is entered in the passbook of the memberhas no actual financial bearing as the interest earned for the year on hismonthly running balances is always added to the closing balance of thatyear and it becomes the opening balance for the next year.

Hence, the member does not suffer any financial loss in case there is anydelay in updating interest in his passbook.

Further, if a member withdraws his EPF dues before the interest is updatedin his passbook, in that case also at the time of his claim settlement,the due interest is calculated and paid from the date it becomes dueautomatically by the system.

Hence, in this case too, there is no financial loss to a member.

Delay in claim settlement due to EPFO’s IT crisis

Officers of the Employees’ Provident Fund Organisation (EPFO) — the world’s largest social security organisation with over 277 million accounts and a corpus of around ₹20 lakh crore — alleged that they are under “extreme duress” after EPFO reverted to the manual updation of annual accounts even as it holds them responsible for any delay in claim settlement beyond stipulated 20 days. The background to the issue is the organisation’s IT system, which employees believe is obsolete.

Weeks before the proposed grand celebrations of EPFO’s 71st Foundation Day on November 1, Employees’ Provident Fund Officers’ Association (EPFOA), in a letter to the government said while claims rejection ratio is an “important barometer” to analyse performance , this metric “cannot be brought down without software intervention” as organisation’s current software is working on “GIGO” principle. In information technology (IT) “garbage in, garbage out” (GIGO) means a flawed input will result in a faulty output.

“While we welcome the scrutiny of claim rejection ratios, the monitoring standard should exclude inadmissible claims, which are bound to be rejected. The statute itself states that claims complete in all respects submitted along with the requisite documents shall be settled and the benefit amount paid to the beneficiary within 20 days. Monitoring of incomplete claims as a performance metric is against the provisions of schemes, yet officers are being routinely, mechanically, and unfairly targeted for rejection of invalid claims,” the letter, reviewed by HT, said.

EPFO has been suffering from serious software infrastructure-related issues for past few years, and these have become worse in the past two-three years, the association said. “Our archaic application software which is the backbone for claims settlement process is now so unresponsive that it takes a herculean effort to complete routine tasks,” it wrote. Confirming the letter, EPFOA’s secretary general Saurabh Swami said the revised performance system now stipulates settlement of subscribers’ claims within 20 days of filing the application, failing which officers are held accountable for payment of additional interest. Earlier, a 30-day timeline was stipulated.

The labour ministry and the Central Provident Fund Commissioner (CPFC) did not respond to an email query .

In another letter dated October 3, addressed to CPFC, EPFOA said, “Our current application software on which bulk of our operations are run is of 2008 vintage.” It listed some of the standard software under use —Windows Vista (2008), IOS 3 (now IOS 17 is available), and Android version 1 (now version 14 is available). “We understand that C-DAC [Centre for Development of Advanced Computing] had, sometime in the year 2019 given a comprehensive proposal for system revamp. EPFO paid consultancy charges for procuring the said recommendation. Inexplicably nothing further has been heard of that proposal.”

The letter pointed out that mammoth tasks of annual accounting are being done manually. “Latest in this process of sub-optimal solutions is the process of annual account updation for the year 2022-23, which till last year was updated through system. Now it requires manual certification. We understand that it signifies almost complete collapse of system in EPFO, thereby forcing a revert to manual updation,” it said.

“EPFO is managing social security money of millions of subscribers and any systemic failure could be disastrous,” a senior EPFO official said requesting anonymity.

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