The EPFO Pension Scheme has made headlines again as the Indian government officially confirmed that over 22,000 Employees’ Provident Fund Organisation (EPFO) members have been approved for a higher pension under the Employees’ Pension Scheme (EPS), 1995. This significant move comes in line with the Supreme Court judgment of November 4, 2022, offering eligible employees an opportunity to receive enhanced pensions for a more secure retirement.
If you’re wondering whether you’re eligible or how to check your pension status, you’re in the right place. This article will walk you through everything you need to know—from understanding the scheme and eligibility criteria to checking your application status.
Also Check: EPFO: Is the Government Planning to Revise EPS Pension Amount? Here’s What the Minister Said in Parliament
What Is the EPFO Pension Scheme?
The Employees’ Pension Scheme (EPS), 1995, is a government-backed pension plan managed by the EPFO. It provides a monthly pension to employees after retirement, disability, or to their family in case of death. The EPS is linked to your Employees’ Provident Fund (EPF) account.
Until recently, pensions were calculated based on a capped salary of Rs. 15,000 per month, regardless of actual salary. However, the Supreme Court’s 2022 ruling now allows eligible employees to receive pensions based on their actual higher salaries, subject to certain conditions.
Why Is This Update Important?
This change is significant for thousands of retirees and employees nearing retirement. For example:
- Suppose you earned Rs. 50,000/month and contributed towards EPF based on full wages.
- Earlier, your pension was calculated as if you earned only Rs. 15,000/month.
- Now, your pension can be recalculated based on Rs. 50,000/month, greatly increasing your post-retirement income.
The EPFO has already processed over 91,000 applications, approving 22,000+ cases.
Who Is Eligible for a Higher Pension?
You may be eligible for a higher pension if you meet the following criteria:
1. Joined EPFO Before September 1, 2014
This benefit applies only to employees who were EPFO members before this date.
2. Contributed on Actual Salary
You must have contributed to EPF on your full salary, not just the Rs. 15,000 ceiling.
3. Submitted a Joint Option
A joint application, signed by both employee and employer, must have been submitted to opt for higher contributions to EPS.
4. Additional 1.16% Contribution
An extra contribution of 1.16% of your salary exceeding Rs. 15,000 per month is required for pension eligibility.
How to Check If You’re Approved for Higher Pension
Here’s a simple, step-by-step guide to help you check your EPFO higher pension application status.
Option 1: EPFO Unified Member Portal
- Visit the Unified Member Portal.
- Click on “Track Application Status for Pension on Higher Wages”.
- Choose “Click Here” under that tab.
- Enter either:
- UAN (Universal Account Number)
- PPO (Pension Payment Order) Number
- Application Acknowledgement Number
- Fill in the Captcha and click “Get OTP”.
- Enter the OTP sent to your registered mobile.
- Click “Get Status” to view the current status.
Option 2: UMANG Mobile App
- Download the UMANG app.
- Log in and go to EPFO Services.
- Click on “Pension Payment Status”.
- Enter relevant details to view your pension updates.
Option 3: EPFO Pensioners’ Portal
- Visit the Pensioners’ Portal.
- Select your EPFO office and enter your PPO number.
- Click “Get Status”.
Also Check: ₹9,000 Pension Demand Gains Traction, EPFO Members Await Government Response
What Happens If You Haven’t Applied Yet?
If you believe you’re eligible but haven’t yet submitted the joint option form, you still have time. The deadline for employers to submit the application is January 31, 2025.
However, your employer must verify and forward your application to EPFO. If this step is skipped, you will not be eligible for a higher pension.
Tip: Follow up with your employer or HR department and ensure your application is submitted and acknowledged.
Common Mistakes and How to Avoid Them
- Using incorrect UAN or PPO numbers: Double-check these details before submitting forms.
- Mobile number not linked to UAN: Ensure your mobile number is up to date to receive OTPs.
- Employer not responding: Send formal emails and follow up regularly.
- Missed deadlines: Set calendar reminders and track all correspondence.
Additional Tips for EPFO Members
1. Keep Your Records Handy
Ensure you maintain physical and digital copies of all your EPFO documents, especially:
- UAN Card
- EPF Passbook
- Joint Option Form Copy
- Salary Slips
- Application Acknowledgement Number
2. Track Notifications from EPFO
Subscribe to updates from the official EPFO website and follow their social media channels for the latest alerts.
3. Consult a Financial Advisor
For high-salary employees, opting for a higher pension can significantly impact retirement planning. A certified financial planner can help you decide whether to go for a lump sum EPF withdrawal or a monthly pension.
Impact on Retirement Planning
Higher pensions can:
- Offer lifelong monthly income, reducing dependence on lump-sum investments.
- Help cover medical expenses and inflation post-retirement.
- Provide financial security to spouses and dependents in case of death.
However, higher EPS contributions may reduce your EPF corpus, which is typically withdrawn in bulk at retirement. Therefore, consider your personal financial goals before making a decision.
(FAQs)
1. Is the higher pension scheme applicable to private sector employees?
Yes, it applies to both private and public sector employees under EPFO, provided they meet eligibility criteria.
2. What if my employer is no longer operational?
In such cases, EPFO has allowed submission of a declaration form and self-certified salary proofs. However, this may require legal validation.
3. Can I switch to higher pension later?
Only if you’re within the deadline and your employer supports your application.
4. Will I get arrears for the higher pension?
No arrears will be paid for past years. The higher pension will be applicable prospectively from the date of approval.
