The Employees’ Provident Fund Organisation (EPFO) has shared a big update that has brought happiness to thousands of pensioners. Around 22,000 members will now get a higher pension after the EPFO started implementing the Supreme Court’s decision on the higher pension scheme. This update is very important for retired and current employees who are part of the Employees’ Pension Scheme (EPS).
What is the Higher Pension Scheme?
Earlier, pensions were calculated on a fixed salary cap of ₹15,000 per month. But now, EPFO allows members to get pension based on their actual full salary, which means more pension after retirement. This change became possible after the Supreme Court’s judgment in November 2022, which allowed eligible members to opt for a higher pension.
Who is Eligible for Higher Pension?
Not everyone can get this benefit. You are eligible only if:
- You were an EPFO member before 1st September 2014
- You contributed to EPS on your full salary
- You had given a joint option with your employer for a higher pension
- You did not withdraw your entire pension amount after retirement
You are not eligible if:
- You joined EPFO after 1st September 2014
- You took out the full EPS amount
- You did not opt for higher pension earlier
How is Higher Pension Calculated?
The pension is calculated using the formula:
Pension = (Pensionable Salary × Years of Service) ÷ 70
Example:
- Old system (₹15,000 salary): (15,000 × 30) ÷ 70 = ₹6,428
- New system (₹50,000 salary): (50,000 × 30) ÷ 70 = ₹21,428
So, you could get ₹15,000 more per month under the higher pension option.
How to Check Your Application Status
To check if your application for higher pension is approved:
- Visit the EPFO Unified Portal
- Log in with your UAN and password
- Click on “Pension” section
- Go to “Application for Validation of Option for Higher Pension”
- Check your application status: Approved, Under Review, or Rejected
Documents You Will Need
- Joint declaration with your employer
- Payslips showing full salary EPS contribution
- UAN and EPF account details
- Aadhaar and PAN
- Bank passbook copy
Make sure there are no mistakes in your documents. Upload all records carefully to avoid delays.
Conclusion
This update by EPFO is a big relief for pensioners. With over 22,000 applications already approved, more will be cleared in the coming months. If you’re eligible, make sure to complete your application with the right documents and stay updated through the EPFO portal.