Tag: EPS

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 EmployeeExercise of joint option Eligibility to claim 8.33% pension contribution on a higher salaryMode 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,6,500YesBy exercising the joint option 
Employees retired before 01/09/2014Exercised joint option and rejected by the EPFOYesBy filing a higher pension claim application
Employees retired before 01/09/2014Not exercised joint option NoNot 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

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 EmployeeExercise of joint option Eligibility to claim 8.33% pension contribution on a higher salaryMode 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,6,500YesBy exercising the joint option 
Employees retired before 01/09/2014Exercised joint option and rejected by the EPFOYesBy filing a higher pension claim application
Employees retired before 01/09/2014Not exercised joint option NoNot 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.

EPF Higher pension contribution under 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 EmployeeExercise of joint option Eligibility to claim 8.33% pension contribution on a higher salaryMode 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,6,500YesBy exercising the joint option 
Employees retired before 01/09/2014Exercised joint option and rejected by the EPFOYesBy filing a higher pension claim application
Employees retired before 01/09/2014Not exercised joint option NoNot 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 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 EmployeeExercise of joint option Eligibility to claim 8.33% pension contribution on a higher salaryMode 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,6,500YesBy exercising the joint option 
Employees retired before 01/09/2014Exercised joint option and rejected by the EPFOYesBy filing a higher pension claim application
Employees retired before 01/09/2014Not exercised joint option NoNot 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 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 EmployeeExercise of joint option Eligibility to claim 8.33% pension contribution on a higher salaryMode 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,6,500YesBy exercising the joint option 
Employees retired before 01/09/2014Exercised joint option and rejected by the EPFOYesBy filing a higher pension claim application
Employees retired before 01/09/2014Not exercised joint option NoNot 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.

EPS 95 pension scheme 1995: New Rules for Employees

EPS 95, or Employee Pension Scheme 1995, is a social security scheme that was launched by the Employees’ Provident Fund Organisation on November 19th 1995. This scheme provides pension benefits after retirement to employees working in the organised sector. EPFO administers the system and assures that employees who have reached the age of 58 will receive a pension.

The benefits of this scheme are available to both existing as well as new EPF members. Both the contracting parties, which include the employee and employer, contribute 12% of the employee’s wage, including the basic salary and dearness allowance (DA), to the EPF. Every month, an employee’s entire contribution is made to the EPF. On the other hand, 8.33% of the employer’s contribution goes to the Employees’ Pension Scheme, and the remaining 3.67% goes to the Employees’ Provident Fund. 

EPS 95 Minimum Pension 

No matter how much you contribute towards the Employee Pension Scheme, there is a minimum range of pensions set by the Government of India. Employees will receive this amount irrespective of how much you contribute. 

Under this scheme, the government offers a fixed minimum pension ranging from Rs.1,000 to Rs.2,000 monthly to pensioners. This was started by the government on September 1st, 2014, along with providing additional budgetary support to the EPF scheme. 

Other than the contribution of the employee and employer, the Government offers budgetary support of 1.16% of the wages of each employee to the Employees’ Provident Fund Scheme. This added support from the Government will be up to a maximum of Rs.15,000 every month.

EPS 95 Pension Latest News 

As per a press release issued on May 3rd, 2023, by the Ministry of Labour & Employment, employees opting for a higher EPS pension will not have to contribute to it. The additional 1.16% of the salary they would have to pay from above the wage ceiling will now be drawn from the 12% of the employer’s contribution. This decision has been taken as per the announcement of the Supreme Court to devise a replacement methodology.

Along with this, the deadline to apply for a higher pension has been extended to June 26th 2023. According to the current pension calculation method under EPS 95, your pension will depend on the total length of service and average basic salary in the last 5 years. Therefore, the longer your service period, the more you will benefit from the pension rule.

EPS 95 Pension Eligibility

 In order to opt for the benefits of EPS 95, you need to fulfil the following eligibility criteria:

  • You need to be a member of the EPFO.
  • You need to serve a minimum of 10 years in the service.
  • The retirement age for a regular pension is 58 years. If you retire earlier, you can also get a pension at a reduced rate.
  • In case you are willing to receive your pension from the age of 60, you will get an additional 4% every year.
  • If you have not completed 10 years of service, but more than 6 months, then you are eligible to withdraw your EPS amount if you are unemployed for more than 2 months.
  • In case an employee becomes disabled totally as well as permanently, then he/she would be eligible for a monthly pension. He/she will receive a monthly pension even if they have not served for the pensionable service period. However, the employee has to undergo a medical test to confirm whether they are unfit for fulfilling the job role due to their disability.
  • Family members of an employee also might be eligible for pension benefits in case the employee passes away while in service.

EPS 95 Pension Rules 

Following is a list of rules in relation to the Employee Pension Scheme 95:

  • Employees who earn Rs.15,000 or less every month need to mandatorily enrol under this scheme. 
  • The employer needs to contribute within 15 days of the closing of every month.
  • If after the death of an employee, their widow or widower remarries, then the children will receive the pension.
  • Contribution made by the employee contains components of basic salary, dearness allowance, admissible cash value of food concessions and retaining allowance.
  • In case you wish to transfer EPS online, you can do so using a composite claim form.
  • A family member of the EPFO member can avail the benefit of EPS by submitting a number of forms. Form 10C is for withdrawal before the completion of 10 years of service. In case of monthly pension withdrawal after the age of 50 years, a member needs to fill up Form 10D. To declare that the widow has not remarried, one needs to get a Non-Remarriage certificate. A life certificate is needed so as to certify that the employee is alive.
  • In order to check the amount accumulated in the EPS account, you can check the EPF passbook. You can download it from the EPF passbook portal. The last column of the passbook will show the monthly contribution to the account.
  • In case you are switching jobs, you need to fill up Form 11 as well as Form 13 and submit them. However, in case you have an existing Universal Account Number (UAN) and you have used Aadhaar as your KYC in the EPF database, submitting only Form 11 will do. Form 11 certifies that you are a member of the EPF scheme, while Form 13 is used to move your PF balance from your previous company to the new one.

How Is EPS 95 Pension Calculated?

The monthly pension amount an employee receives depends on the pensionable service of the employee and pensionable salary. 

Here is the formula for calculating any member employee’s monthly pension income:

Member’s Monthly Pension = (Pensionable salary x Pensionable Service)/70

  • Pensionable Salary

It is the average monthly salary that an employee receives in the last 60 months before they decide to exit the Employees’ Pension Scheme. This is as per the judgement of the Supreme Court on November 4th 2022. Earlier, it was the average monthly salary of the last 12 months of the employee’s participation in the scheme.

  • Pensionable Service

This refers to the total number of years for which contributions were made to the EPS account. According to the law, pensionable service must be rounded off to the nearest year. This means that in case you serve for 6 months or more, then it will be treated as a year. If it is less than 6 months, the year will not be counted. If you superannuate at the age of 58 years and have served for more than 20 years, then your service tenure will be increased by 2 years. 

Benefits Of EPS 95 Pension

Employees who are eligible for EPS pension can avail a number of benefits. Let us take a look at them:

  • Pension From the Age of 58

An EPS member becomes eligible for a pension from the age of 58 as soon as they retire. However, to become eligible for getting a pension, they need to compulsorily contribute for 10 years before turning 58. After retirement, they will receive an EPS pension scheme certificate. This certificate is a must for filling up form 10D to withdraw monthly pension.

  • Pension in Case of Disability

In case a member of EPS becomes disabled completely as well as permanently, then they will receive a monthly pension. This is irrespective of whether they have served for the pensionable period or not. This member will receive a pension starting from the date of permanent disability and for their entire life. 

The employer must deposit funds in this person’s EPS account for at least a month to become eligible for a pension. However, the employee will have to undergo a medical test to prove the fact that they are unfit for the job that they did before becoming disabled.

  • Pension in Case of Employee’s Death

An EPS member’s family will receive family pension benefits in case of death of the employee under 3 circumstances:

  1. If a member completes 10 years of service and dies before the age of 58 years.
  2. In case a member dies after they start receiving a monthly pension.
  3. If a member dies while still serving and the employer has at least once deposited funds into their EPS account.

In case a member of EPS is unable to remain in service for 10 years due to some reason and reaches the age of 58, they can withdraw the entire some they have invested by filling up form 10C. However, in this case, they will not receive any monthly pension.

EPS Eligible service calculation

If an employee has worked for six months or more, his or her service tenure is counted as one year. The working length will not be taken into account if the service period is less than 6 months. As a result, if an employee has worked for ten years and seven months, the number of years of service will be calculated as eleven. However, if a person has worked for ten years and five months, the number of years of service is ten.

Contribution towards Employee Pension Scheme

The employer and employee contribute 12% of the employee’s basic salary and DA towards the EPF scheme. The 12% contribution made by the employer is split in the below-mentioned ways:

  1. EPF Contribution: 3.67%
  2. EPS Contribution: 8.33%

Apart from the above-mentioned contributions, the Government of India contributes 1.16% as well. Employees are not eligible to contribute to the scheme.

Process to check EPS balance

The Universal Account Number can be used to check the EPS balance on the EPFO portal (UAN). Individuals must first finish the UAN activation process.

The step-by-step procedure to check the EPF balance after the activation of UAN is complete is mentioned below:

Step 1: You must visit the official website of EPFO (https://www.epfindia.gov.in/site_en/index.php).

Step 2: Click on ‘For Employees‘ under the ‘Our Services‘ menu.

Step 3: Click on ‘Member Passbook‘ on the next page.

Step 4: Next, enter the User Name (UAN), password, and captcha details. Click on ‘Login‘.

Step 5: On the next page, various Member IDs will be displayed. Click on the respective Member ID.

Step 6: The total pension amount that has been contributed will be displayed under ‘Pension Contribution‘ column.

Step 7: You will be able to download and take a print out of the statement as well.

Process to calculate monthly Pension

Calculation of monthly pension falls into the 2 categories that are mentioned below:

Pension calculation for individuals who have joined after 16 November 1995.

The process for the calculation of EPS for the 2 categories are mentioned below:

Calculation of pension if the individual has joined before 16 November 1995:

In case individuals have joined the organisation before 16 November 1995, the amount of pension they receive is fixed and it is based on their salary. Given in the table below is the break-up of the pension amount that an individual will receive:

Number of years of service (years)Pension Amount (In case the salary is Rs.2,500 or less)Pension Amount (In case the salary is more than Rs.2,500)
10Rs.80Rs.85
11-15Rs.95Rs.105
15-20Rs.120Rs.135
More than 20Rs.150Rs.170

Calculation of Pension in case the individual has joined after 16 November 1995:

The below-mentioned formula must be used for the calculation of pension in case the individual has joined after 16 November 1995:

EPS = (Service Period x Pensionable Salary)/70

Calculation of Pensionable Salary is based on the average income an individual has made over the last 5 years.

EPS Withdrawal

  1. If an individual has worked for less than 10 years

If a person has not completed 10 years of service, he or she will be eligible to withdraw the EPS amount. If the employee is currently employed and has not completed ten years of service, he or she will not be eligible to take EPS funds. The EPS amount can only be withdrawn once the employee has left the company and before starting a new job.

He/she can claim Form 10C on the EPFO portal to withdraw the EPS amount. To withdraw the EPS amount online, the employee must have an active UAN and the KYC details must be linked to the UAN.

Individuals who have worked for less than six months may apply for a scheme certificate, but they will not be allowed to withdraw EPS due to EPFO regulations. Only a portion of the EPS amount can be taken depending on the number of years an individual has worked.

  1. If an individual has worked for more than 10 years

EPS withdrawal benefits will be stopped if the employee has completed more than 10 years of service. However, by filling Form 10C, the employee will be able to apply for a scheme certificate.

EPS forms

There are different EPS forms that are available

FormWho can use it?Purpose
Form 10CMember/BeneficiaryEPS Scheme CertificateTo withdraw the pension amount before completion of 10 years of service.
Life CertificatePensionerThe pensioner must sign this form stating that he/she is alive.Must be submitted to bank manager where the pension funds are received every November.
Form 10DMember/Nominee/Widow/Widower/ChildrenWithdrawal of pension once the member attains the age of 50 years.Monthly child pension, widow pension, etc.
Non-Remarriage CertificateWidow/WidowerThe form is used to certify that the widower/widow has not remarried.The form must be submitted by November on a yearly basis.
New Form 11MemberMust be used by the member to furnish bank and Aadhaar details. Once the UAN has been activated, a cheque must be provided with the name, IFSC code, and account number mentioned on it.

What is the procedure to check your EPS Amount 

Given below are the steps you will have to follow to check the amount available in your EPS account: 

  1. Visit the Employees’ Provident Fund Organization’s (EPFO) official website at https://www.epfindia.gov.in/.   
  2. Click the ‘For Employees’ link on the homepage’s ‘Our Services’ section. 
  1.  Go to ‘Services’ and choose ‘Member Passbook.’ 
  2.  A redirect to the Unified Member Portal will take place. Use your password, Universal Account Number (UAN), and captcha code to log in. 
  3.  You will be taken to the Member Passbook page after logging in. You can examine the specifics of your EPF (Employee Provident Fund) account here. 
  4.  The “Pension Contribution” component can be found by scrolling down. Your EPS contributions and the total amount will be described in full in this section. 
  5.  You can examine the balance in your EPS account as well as the donations made to it. 

Points to remember about EPS Pension 

Before contributing to your EPS account, there are certain points you must remember about EPS pension. They are given below: 

  1. The employer must make all contributions to the Employees’ Pension Scheme (EPS) account. 
  2. Basic salary plus a dearness allowance, a retention allowance, and the allowable cash worth of food concessions make up the employee’s remuneration. 
  3. The employer is required to cover all applicable contribution costs. 
  1. 8.33% of the employee’s salary is contributed by the employer to EPS. 
  2. The employer is required to contribute within 15 days of each month’s end. 
  3. For the purpose of receiving pension benefits, a minimum of 10 years of service are required. 
  4. All workers who are employed by the major employer, whether directly or through a contractor, are required to make contributions. 
  5. The plan stipulates that a person must be 58 years old to retire. 
  1. After turning 58 years or when they begin receiving a reduced pension at age 50 years, an employee no longer qualifies as a member of the pension fund. 
  2. You may withdraw the EPS amount after being out of work for more than two months if you have fewer than ten years of service but more than six months of service. 

EPF pension calculator Excel Download

Important FAQs

Is there any difference between EPS 95 and NPS pension schemes?

EPS 95 is extended for the employees who is a Employee’s Provident Fund(EPF) Account Holders, however NPS is a voluntary scheme the employee’s can invest in. Both the schemes provide retirement benefit for the employees. 

Is there a minimum limit for pension in EPFO ?

Yes, Rs. 1000 is to be provided as minimum pension by the government to the pensioners. 

What is the difference between EPF and EPS?

EPF does not pay pension if there is no contribution by the employee and the employer. However, EPS pays pension even without contribution. 

What is the salary limit for the EPS 95?

Rs. 15,000 is the salary limit for EPS 95.

What is the formula for calculating EPF pension?

This calculation is determined by using the formula: (Pensionable Salary X Pensionable Service)/70 = (15,000 x 35)/70 = Rs 7,500. In order to qualify for pension benefits, EPF subscribers must have served for at least 10 years and retire after reaching the age of 58.

EPF New Rules for Employees 2025

The EPFO has introduced several changes for 2025, aimed at improving services and efficiency:

  • Easier PF Transfer: Online transfer requests no longer need to be routed through employers in many cases, making it simpler to move your PF account when changing jobs.
  • Member Profile Updates: Aadhaar-verified UAN holders can directly update personal details online without submitting documents.
  • Joint Declaration Simplification: A streamlined process replaces specific recommendations from SOP Version 3.0, making it easier for members and employers.
  • Centralized Pension Payment System (CPPS): No more PPO transfers due to banking jurisdictions, and pensioners can use their UAN-KYC linked accounts for pension receipts.
  • Higher Pension Guidelines Update: Ensures fair and uniform pension calculation, adherence to trust rules, and separate handling of dues and arrears.

Contents  show 

EPF changes

The Employees’ Provident Fund Organization (EPFO) has implemented significant service updates, such as a Centralized Pension Payment System (CPPS), a simplified joint declaration process, clarified pension policies for higher wages, the ability to update member profiles online, and simple PF transfers. The following details outline each of these adjustments, which you can use to better manage your EPF.

Joint Declaration process

The Employees’ Provident Fund Organization (EPFO) has issued a new circular on the Joint Declaration process, which has been simplified and replaces certain recommendations from SOP Version 3.0. The new guidelines replace the earlier version of the Standard Operating Procedure (SOP Version 3.0), which was issued on July 31, 2024.

The latest updates include specific changes introduced to streamline the process, including new classifications for members, revised document submission methods, and updated procedures for employers and claimants.

Centralized Pension Payment System (CPPS)

The Employees’ Provident Fund Organization (EPFO) in a new circular outlines the implementation of the Centralized Pension Payment System (CPPS), effective January 1, 2025.

CPPS enables pension payments through the National Payments Corporation of India (NPCI), allowing pensions to be processed for any bank account, in any branch, of any scheduled commercial bank across India. Regional Offices (ROs) are now equipped as CPPS–enabled offices.

The EPFO said in a circular dated January 17, 2025, “It js reiterated that as CPPS is implemented w.e.f 1st Jan 2025, there shall be no transfer out to another RO. For cases which are already marked for transfer out but not yet transferred through e office as per Instructions Issued, the original RO in which claim is received, shall process it without transferring to any other RO. The claims erroneously transferred to another office in e office after 1st Jan 2025, shall be returned back to original office for necessary action.”

Clarification on higher pension

The Employees’ Provident Fund Organization (EPFO) issued a new circular outlining policy clarifications on the processing of pension cases for individuals receiving higher earnings under the Employees’ Pension Scheme (EPS). Field offices raised questions regarding specific policy issues related to Pension on Higher Wages (PoHW) cases. These concerns were referred to the Ministry of Labour & Employment (MoL&E) for resolution.

The clarifications focus on:
Ensuring equity in pension computation between categories of pensioners.
Following trust rules strictly for exempted establishments.

Maintaining clear processes for dues and pension arrears without mixing the two. These clarifications aim to align field operations with legal and procedural standards while ensuring consistency and transparency in handling PoHW cases.

EPF member profile updation

The Employees’ Provident Fund Organization (EPFO) has significantly simplified the member profile update process to demonstrate its dedication to enhancing member services and guaranteeing the accuracy of member data. According to the updated process, members whose Universal Account Number (UAN) has already been verified via Aadhaar can update their personal information, including their name, birthdate, gender, nationality, father or mother’s name, marital status, spouse’s name, joining and departing dates, and date of birth, without having to upload any supporting documentation. The update would only need the employer’s certification in specific situations if the UAN was issued before October 1, 2017.

Transfer of PF

The Employees Provident Fund Organisation (EPFO) has substantially simplified the procedure for transferring Provident Fund (PF) accounts for EPFO members who change jobs.

According to an EPFO circular issued on January 15, 2025, in the following cases online account transfer requests need not necessarily be routed via past or present employer.

EPS 95 Pension Scheme: big update, Benefits, and Excel Calculation

EPS 95, or Employee Pension Scheme 1995, is a social security scheme that was launched by the Employees’ Provident Fund Organisation on November 19th 1995. This scheme provides pension benefits after retirement to employees working in the organised sector. EPFO administers the system and assures that employees who have reached the age of 58 will receive a pension.

The benefits of this scheme are available to both existing as well as new EPF members. Both the contracting parties, which include the employee and employer, contribute 12% of the employee’s wage, including the basic salary and dearness allowance (DA), to the EPF. Every month, an employee’s entire contribution is made to the EPF. On the other hand, 8.33% of the employer’s contribution goes to the Employees’ Pension Scheme, and the remaining 3.67% goes to the Employees’ Provident Fund. 

EPS 95 Minimum Pension 

No matter how much you contribute towards the Employee Pension Scheme, there is a minimum range of pensions set by the Government of India. Employees will receive this amount irrespective of how much you contribute. 

Under this scheme, the government offers a fixed minimum pension ranging from Rs.1,000 to Rs.2,000 monthly to pensioners. This was started by the government on September 1st, 2014, along with providing additional budgetary support to the EPF scheme. 

Other than the contribution of the employee and employer, the Government offers budgetary support of 1.16% of the wages of each employee to the Employees’ Provident Fund Scheme. This added support from the Government will be up to a maximum of Rs.15,000 every month.

EPS 95 Pension Latest News 

As per a press release issued on May 3rd, 2023, by the Ministry of Labour & Employment, employees opting for a higher EPS pension will not have to contribute to it. The additional 1.16% of the salary they would have to pay from above the wage ceiling will now be drawn from the 12% of the employer’s contribution. This decision has been taken as per the announcement of the Supreme Court to devise a replacement methodology.

Along with this, the deadline to apply for a higher pension has been extended to June 26th 2023. According to the current pension calculation method under EPS 95, your pension will depend on the total length of service and average basic salary in the last 5 years. Therefore, the longer your service period, the more you will benefit from the pension rule.

EPS 95 Pension Eligibility

 In order to opt for the benefits of EPS 95, you need to fulfil the following eligibility criteria:

  • You need to be a member of the EPFO.
  • You need to serve a minimum of 10 years in the service.
  • The retirement age for a regular pension is 58 years. If you retire earlier, you can also get a pension at a reduced rate.
  • In case you are willing to receive your pension from the age of 60, you will get an additional 4% every year.
  • If you have not completed 10 years of service, but more than 6 months, then you are eligible to withdraw your EPS amount if you are unemployed for more than 2 months.
  • In case an employee becomes disabled totally as well as permanently, then he/she would be eligible for a monthly pension. He/she will receive a monthly pension even if they have not served for the pensionable service period. However, the employee has to undergo a medical test to confirm whether they are unfit for fulfilling the job role due to their disability.
  • Family members of an employee also might be eligible for pension benefits in case the employee passes away while in service.

EPS 95 Pension Rules 

Following is a list of rules in relation to the Employee Pension Scheme 95:

  • Employees who earn Rs.15,000 or less every month need to mandatorily enrol under this scheme. 
  • The employer needs to contribute within 15 days of the closing of every month.
  • If after the death of an employee, their widow or widower remarries, then the children will receive the pension.
  • Contribution made by the employee contains components of basic salary, dearness allowance, admissible cash value of food concessions and retaining allowance.
  • In case you wish to transfer EPS online, you can do so using a composite claim form.
  • A family member of the EPFO member can avail the benefit of EPS by submitting a number of forms. Form 10C is for withdrawal before the completion of 10 years of service. In case of monthly pension withdrawal after the age of 50 years, a member needs to fill up Form 10D. To declare that the widow has not remarried, one needs to get a Non-Remarriage certificate. A life certificate is needed so as to certify that the employee is alive.
  • In order to check the amount accumulated in the EPS account, you can check the EPF passbook. You can download it from the EPF passbook portal. The last column of the passbook will show the monthly contribution to the account.
  • In case you are switching jobs, you need to fill up Form 11 as well as Form 13 and submit them. However, in case you have an existing Universal Account Number (UAN) and you have used Aadhaar as your KYC in the EPF database, submitting only Form 11 will do. Form 11 certifies that you are a member of the EPF scheme, while Form 13 is used to move your PF balance from your previous company to the new one.

How Is EPS 95 Pension Calculated?

The monthly pension amount an employee receives depends on the pensionable service of the employee and pensionable salary. 

Here is the formula for calculating any member employee’s monthly pension income:

Member’s Monthly Pension = (Pensionable salary x Pensionable Service)/70

  • Pensionable Salary

It is the average monthly salary that an employee receives in the last 60 months before they decide to exit the Employees’ Pension Scheme. This is as per the judgement of the Supreme Court on November 4th 2022. Earlier, it was the average monthly salary of the last 12 months of the employee’s participation in the scheme.

  • Pensionable Service

This refers to the total number of years for which contributions were made to the EPS account. According to the law, pensionable service must be rounded off to the nearest year. This means that in case you serve for 6 months or more, then it will be treated as a year. If it is less than 6 months, the year will not be counted. If you superannuate at the age of 58 years and have served for more than 20 years, then your service tenure will be increased by 2 years. 

Benefits Of EPS 95 Pension

Employees who are eligible for EPS pension can avail a number of benefits. Let us take a look at them:

  • Pension From the Age of 58

An EPS member becomes eligible for a pension from the age of 58 as soon as they retire. However, to become eligible for getting a pension, they need to compulsorily contribute for 10 years before turning 58. After retirement, they will receive an EPS pension scheme certificate. This certificate is a must for filling up form 10D to withdraw monthly pension.

  • Pension in Case of Disability

In case a member of EPS becomes disabled completely as well as permanently, then they will receive a monthly pension. This is irrespective of whether they have served for the pensionable period or not. This member will receive a pension starting from the date of permanent disability and for their entire life. 

The employer must deposit funds in this person’s EPS account for at least a month to become eligible for a pension. However, the employee will have to undergo a medical test to prove the fact that they are unfit for the job that they did before becoming disabled.

  • Pension in Case of Employee’s Death

An EPS member’s family will receive family pension benefits in case of death of the employee under 3 circumstances:

  1. If a member completes 10 years of service and dies before the age of 58 years.
  2. In case a member dies after they start receiving a monthly pension.
  3. If a member dies while still serving and the employer has at least once deposited funds into their EPS account.

In case a member of EPS is unable to remain in service for 10 years due to some reason and reaches the age of 58, they can withdraw the entire some they have invested by filling up form 10C. However, in this case, they will not receive any monthly pension.

EPS Eligible service calculation

If an employee has worked for six months or more, his or her service tenure is counted as one year. The working length will not be taken into account if the service period is less than 6 months. As a result, if an employee has worked for ten years and seven months, the number of years of service will be calculated as eleven. However, if a person has worked for ten years and five months, the number of years of service is ten.

Contribution towards Employee Pension Scheme

The employer and employee contribute 12% of the employee’s basic salary and DA towards the EPF scheme. The 12% contribution made by the employer is split in the below-mentioned ways:

  1. EPF Contribution: 3.67%
  2. EPS Contribution: 8.33%

Apart from the above-mentioned contributions, the Government of India contributes 1.16% as well. Employees are not eligible to contribute to the scheme.

Process to check EPS balance

The Universal Account Number can be used to check the EPS balance on the EPFO portal (UAN). Individuals must first finish the UAN activation process.

The step-by-step procedure to check the EPF balance after the activation of UAN is complete is mentioned below:

Step 1: You must visit the official website of EPFO (https://www.epfindia.gov.in/site_en/index.php).

Step 2: Click on ‘For Employees‘ under the ‘Our Services‘ menu.

Step 3: Click on ‘Member Passbook‘ on the next page.

Step 4: Next, enter the User Name (UAN), password, and captcha details. Click on ‘Login‘.

Step 5: On the next page, various Member IDs will be displayed. Click on the respective Member ID.

Step 6: The total pension amount that has been contributed will be displayed under ‘Pension Contribution‘ column.

Step 7: You will be able to download and take a print out of the statement as well.

Process to calculate monthly Pension

Calculation of monthly pension falls into the 2 categories that are mentioned below:

Pension calculation for individuals who have joined after 16 November 1995.

The process for the calculation of EPS for the 2 categories are mentioned below:

Calculation of pension if the individual has joined before 16 November 1995:

In case individuals have joined the organisation before 16 November 1995, the amount of pension they receive is fixed and it is based on their salary. Given in the table below is the break-up of the pension amount that an individual will receive:

Number of years of service (years)Pension Amount (In case the salary is Rs.2,500 or less)Pension Amount (In case the salary is more than Rs.2,500)
10Rs.80Rs.85
11-15Rs.95Rs.105
15-20Rs.120Rs.135
More than 20Rs.150Rs.170

Calculation of Pension in case the individual has joined after 16 November 1995:

The below-mentioned formula must be used for the calculation of pension in case the individual has joined after 16 November 1995:

EPS = (Service Period x Pensionable Salary)/70

Calculation of Pensionable Salary is based on the average income an individual has made over the last 5 years.

EPS Withdrawal

  1. If an individual has worked for less than 10 years

If a person has not completed 10 years of service, he or she will be eligible to withdraw the EPS amount. If the employee is currently employed and has not completed ten years of service, he or she will not be eligible to take EPS funds. The EPS amount can only be withdrawn once the employee has left the company and before starting a new job.

He/she can claim Form 10C on the EPFO portal to withdraw the EPS amount. To withdraw the EPS amount online, the employee must have an active UAN and the KYC details must be linked to the UAN.

Individuals who have worked for less than six months may apply for a scheme certificate, but they will not be allowed to withdraw EPS due to EPFO regulations. Only a portion of the EPS amount can be taken depending on the number of years an individual has worked.

  1. If an individual has worked for more than 10 years

EPS withdrawal benefits will be stopped if the employee has completed more than 10 years of service. However, by filling Form 10C, the employee will be able to apply for a scheme certificate.

EPS forms

There are different EPS forms that are available

FormWho can use it?Purpose
Form 10CMember/BeneficiaryEPS Scheme CertificateTo withdraw the pension amount before completion of 10 years of service.
Life CertificatePensionerThe pensioner must sign this form stating that he/she is alive.Must be submitted to bank manager where the pension funds are received every November.
Form 10DMember/Nominee/Widow/Widower/ChildrenWithdrawal of pension once the member attains the age of 50 years.Monthly child pension, widow pension, etc.
Non-Remarriage CertificateWidow/WidowerThe form is used to certify that the widower/widow has not remarried.The form must be submitted by November on a yearly basis.
New Form 11MemberMust be used by the member to furnish bank and Aadhaar details. Once the UAN has been activated, a cheque must be provided with the name, IFSC code, and account number mentioned on it.

What is the procedure to check your EPS Amount 

Given below are the steps you will have to follow to check the amount available in your EPS account: 

  1. Visit the Employees’ Provident Fund Organization’s (EPFO) official website at https://www.epfindia.gov.in/.   
  2. Click the ‘For Employees’ link on the homepage’s ‘Our Services’ section. 
  1.  Go to ‘Services’ and choose ‘Member Passbook.’ 
  2.  A redirect to the Unified Member Portal will take place. Use your password, Universal Account Number (UAN), and captcha code to log in. 
  3.  You will be taken to the Member Passbook page after logging in. You can examine the specifics of your EPF (Employee Provident Fund) account here. 
  4.  The “Pension Contribution” component can be found by scrolling down. Your EPS contributions and the total amount will be described in full in this section. 
  5.  You can examine the balance in your EPS account as well as the donations made to it. 

Points to remember about EPS Pension 

Before contributing to your EPS account, there are certain points you must remember about EPS pension. They are given below: 

  1. The employer must make all contributions to the Employees’ Pension Scheme (EPS) account. 
  2. Basic salary plus a dearness allowance, a retention allowance, and the allowable cash worth of food concessions make up the employee’s remuneration. 
  3. The employer is required to cover all applicable contribution costs. 
  1. 8.33% of the employee’s salary is contributed by the employer to EPS. 
  2. The employer is required to contribute within 15 days of each month’s end. 
  3. For the purpose of receiving pension benefits, a minimum of 10 years of service are required. 
  4. All workers who are employed by the major employer, whether directly or through a contractor, are required to make contributions. 
  5. The plan stipulates that a person must be 58 years old to retire. 
  1. After turning 58 years or when they begin receiving a reduced pension at age 50 years, an employee no longer qualifies as a member of the pension fund. 
  2. You may withdraw the EPS amount after being out of work for more than two months if you have fewer than ten years of service but more than six months of service. 

EPF pension calculator Excel Download

Important FAQs

Is there any difference between EPS 95 and NPS pension schemes?

EPS 95 is extended for the employees who is a Employee’s Provident Fund(EPF) Account Holders, however NPS is a voluntary scheme the employee’s can invest in. Both the schemes provide retirement benefit for the employees. 

Is there a minimum limit for pension in EPFO ?

Yes, Rs. 1000 is to be provided as minimum pension by the government to the pensioners. 

What is the difference between EPF and EPS?

EPF does not pay pension if there is no contribution by the employee and the employer. However, EPS pays pension even without contribution. 

What is the salary limit for the EPS 95?

Rs. 15,000 is the salary limit for EPS 95.

What is the formula for calculating EPF pension?

This calculation is determined by using the formula: (Pensionable Salary X Pensionable Service)/70 = (15,000 x 35)/70 = Rs 7,500. In order to qualify for pension benefits, EPF subscribers must have served for at least 10 years and retire after reaching the age of 58.

Higher pension contribution under 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 EmployeeExercise of joint option Eligibility to claim 8.33% pension contribution on a higher salaryMode 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,6,500YesBy exercising the joint option 
Employees retired before 01/09/2014Exercised joint option and rejected by the EPFOYesBy filing a higher pension claim application
Employees retired before 01/09/2014Not exercised joint option NoNot 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.

SALIENT FEATURES OF EPS’95

Know more about the Employee Pension Scheme’95! This scheme has various beneficial provisions for members during their lifetime and after, in terms of pension benefits.

In 1995, the Employees’ Provident Fund Organisation (EPFO) started the Employee Pension Scheme (EPS) as a social security scheme. The EPS is highly beneficial for employees working in the organized sector since it provides them with a secure post-retirement pension.

So, where does this pension come from? The EPS is tied to the Employees’ Provident Fund (EPF). Each month, the employer and the employee individually contribute 12% of the employee’s salary towards the EPF. The employee’s entire share goes towards the EPF. On the other hand, 8.33% of the employer’s share goes towards the Employees’ Pension Scheme (EPS), and the remaining 3.67% goes towards the EPF.Let us now explore the features and benefits of the EPS.

SALIENT FEATURES OF EPS’95

  • Member Pension upon superannuation at the age of 58years.
  • Early Member Pension from age of 50 years (Only ifunemployed)
  • Disablement Pension on permanent and total disablementof member during service.
  • Widow/Widower Pension on death of Member [includingunder 1st Proviso to Para 12 (8)] or Pensioner.
  • Children Pension for 2 children at a time till the age of 25years on death of the member/pensioner.
  • Orphan Pension to 2 orphans at a time till the age of 25years on death of a member/pensioner when there isno spouse or on death of spouse.
  • Disabled Children/Orphan Pension for the entire life of thedisabled child/orphan.
  • Nominee Pension on death of member and paid for life toa person duly nominated by the member in case there isno family as defined under EPS, 1995.
  • Pension to dependent father/mother upon death of amember provided there is no family or nominee of themember.

Benefits of the EPS

1. Guaranteed returns: EPS is a government-run initiative. So, there are no risks to investing in the scheme, and you will receive guaranteed returns. The minimum monthly pension amount that you will receive is Rs. 1,000. As per reports, the government plans to increase this to Rs. 2,000. When you want to start receiving your pension, you have to fill out Form 10D and receive an EPS Certificate. 

2. Your family will receive your EPS after your death: In case of your death, your spouse will continue to receive the EPS amount until their death. After that, your children will receive the pension amount until they reach the age of 25 years. If the children are physically challenged, they will receive the pension amount until their death.

3. You will receive your EPS pension on total disablement during your service: If unfortunately, you become disabled totally and permanently during your service, you are entitled to a monthly pension. This benefit is applicable even if you have not yet completed your pensionable service period. Your employer has to deposit their share of funds in your EPS account for at least one month to be eligible for the pension. Then, this pension is payable for your lifetime. 

Quick Steps to file EPS Nomination

EPFO members should file e-nomination for EPS to provide Social Security to their families. The scheme is provided by the Employees’ Provident Fund Organisation (EPFO) and ensures that employees receive a pension once they attain the age of 58 years old.

Latest Update:

EPFO in a tweet has said that the account holders will be able to add nominees through the e-nomination facility even after 31 December as well. (There is no due date as earlier it was 31.12.2021)

According to EFPO, one should file e-Nomination because it helps in getting Provident Fund (PF), Pension (EPS) and Insurance (EDLI) benefits easily member’s death and also facilitate nominee to file online claims.

Please follow these quick Steps:

  1. Step 1 Visit EPFO website >>Click on Services >> For Employees  

Click ‘Member UAN/Online Service (OCS/OTCP). 

  • Step 2 Login with UAN and Password. If password forget, please reset password.
  • Step 3 Select E—Nomination under ‘Manage Tab. 
  • Step 4 Provide details Tab will appear on the screen. Click ‘Save ‘. 
  • Step 5 Click ‘Yes’ to update Family Declaration. 
  • Step 6: Click Add Family Details. (More Than one nominee can be added) 
  • Step 7 Click ‘Nomination Details to declare the total amount of share. Click ‘Save EPF Nomination’. 
  • Step 8 Check ‘E-sign’ to generate OTP. Submit ‘OTP’ send on 8 mobile numbers linked with Aadhaar e-nomination is now registered with EPFO. After e-nomination, no need to send any document to the employer or ex-employer. 

Kindly note:

  1. An EPFO subscriber can submit EPF, EPS nomination digitally by logging in at the EPFO website — www.epfindia.gov.in
  2. Employees who are enrolled in the EPF scheme will automatically be enrolled in the EPS scheme.
  3. The EPS balance can be checked on the EPFO portal with the help of the Universal Account Number (UAN).
  4. Benefit of the EPS is paid to the employee and in his or her absence, to the family of the employee.
  5. An employee is entitled to receive pension only after completion of minimum 10 years of eligible service.

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.

Quick Steps to submit EPS nomination digitally

EPFO members should file e-nomination for EPS to provide Social Security to their families. The scheme is provided by the Employees’ Provident Fund Organisation (EPFO) and ensures that employees receive a pension once they attain the age of 58 years old.

Latest Update:

EPFOin a tweet has said that the account holders will be able to add nominees through the e-nomination facility even after 31 December as well. (There is no due date as earlier it was 31.12.2021)

According to EFPO, one should file e-Nomination because it helps in getting Provident Fund (PF), Pension (EPS) and Insurance (EDLI) benefits easily member’s death and also facilitate nominee to file online claims.

Please follow these quick Steps:

  1. Step 1 Visit EPFO website >>Click on Services >> For Employees  Click ‘Member UAN/Online Service (OCS/OTCP). 
  2. Step 2 Login with UAN and Password. If password forget, please reset password.
  3. Step 3 Select E—Nomination under ‘Manage Tab. 
  4. Step 4 Provide details Tab will appear on the screen. Click ‘Save ‘. 
  5. Step 5 Click ‘Yes’ to update Family Declaration. 
  6. Step 6: Click Add Family Details. (More Than one nominee can be added) 
  7. Step 7 Click ‘Nomination Details to declare the total amount of share. Click ‘Save EPF Nomination’. 
  8. Step 8 Check ‘E-sign’ to generate OTP. Submit ‘OTP’ send on 8 mobile numbers linked with Aadhaar e-nomination is now registered with EPFO. After e-nomination, no need to send any document to the employer or ex-employer. 

Kindly note:

  1. An EPFO subscriber can submit EPF, EPS nomination digitally by logging in at the EPFO website — www.epfindia.gov.in
  2. Employees who are enrolled in the EPF scheme will automatically be enrolled in the EPS scheme.
  3. The EPS balance can be checked on the EPFO portal with the help of the Universal Account Number (UAN).
  4. Benefit of the EPS is paid to the employee and in his or her absence, to the family of the employee.
  5. An employee is entitled to receive pension only after completion of minimum 10 years of eligible service.

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