The Employees' Provident Fund Organisation (EPFO) has recently launched a calculator designed to help employees determine their additional contribution for a higher pension under the Employees' Pension Scheme (EPS). This calculator provides an Excel-based utility that estimates the dues individuals need to pay in order to receive an increased pension.
The deadline for availing the higher pension is June 26, 2023. To assist eligible individuals in applying for the enhanced pension, the retirement fund body has also published a set of frequently asked questions (FAQs).
Where can you find the calculator? The calculator can be accessed through the Member Sewa portal of the EPFO. Simply click on the pension application link, located under the "Important links" section.
How to use the calculator? To determine the additional amount required for a higher pension, employees need to provide the date of their joining the Employees' Provident Fund (EPF) scheme. This should be accompanied by the wage amount from either the date of joining the EPF scheme or November 1995, whichever is later.
Users should enter their wage details until either the date of retirement or February 2023, whichever comes earlier. Once all the wage data is inputted into the calculator, it will calculate the additional EPS contribution necessary to bridge any shortfall.
The calculator will also generate the total interest accrued on this missing contribution until March 31, 2023, based on the EPF's historical interest rates for the corresponding months. Additionally, it will provide a summary of the total amount that will be transferred from the EPF account, along with the interest, to the EPS account.
Reports suggest that the Employees' Provident Fund Organisation (EPFO) is considering a three-month extension for the deadline of the higher EPS pension. Previously, the EPFO extended the deadline from March 3, 2023, to May 3, 2023, and subsequently from May 3, 2023, to June 26, 2023.
For those opting for a higher EPS pension, an additional 1.16% of the actual basic salary above the wage ceiling (currently Rs. 15,000) will be contributed to the EPS account.
