EPFO Higher Pension Scheme: Who Can Apply? Things You Need to Know

Following a significant amendment, members who have registered themselves under the EPF (Employees' Provident Fund) scheme can opt for a higher pension amount depending on their basic salary.

Previously, the authorities allowed their registered members to opt for an EPFO higher pension till July 11 2023. However, the Employees' Provident Fund Organisation has once again extended this deadline to January 31, 2025. This is not the first extension, as the EPFO has previously announced extensions through press releases. Many employers' associations have requested more time due to challenges in submitting wage details of applicant pensioners.

To get details about eligibility for the EPFO higher pension scheme, continue reading this blog. 

What Is a Higher Pension Scheme Under EPS?

Earlier, a prescribed pension limit of ₹6,500 or ₹15,000 was set under the Employees' Pension Scheme (EPS). Employees, who have been long-term EPF members (on or before August 31, 2014) or those who retired before this date, can request a greater pension amount by accessing the EPFO higher pension form.

As per the revised system, one can choose to pay higher contributions allowing them to get a pension based on the average of their last drawn wages, rather than a limited amount. It is possible to track the EPF balance online by downloading the UMANG app. 

Who Can Apply for the EPFO Higher Pension Scheme?

Employees’ Provident Fund members who have been in service for 10 years or more can proceed with the EPFO higher pension online application under EPS-95. If you are a regular person, you have to be more than 58 years old to be eligible. On the other hand, EPFO subscribers who voluntarily wish to retire early can attain this scheme at the age of 50. 

Before you apply for a higher pension, let’s have a look at the monthly pension formula:

Monthly EPF pension = Pensionable Wage * Pensionable Service/70 (on a pro-rata basis). 

Here, the maximum pensionable salary is capped at ₹6,500 for pensionable services delivered till September 1, 2014. Thereafter, the amount has been extended to ₹15,000 for all registered individuals. 

How to Opt for a Higher Pension Under EPF?

For employees who have retired before 2014, here is a step-by-step guide on how to opt for the higher pension scheme:

Step 1: Open the official website of the EPFO Unified Member portal.

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

Step 3: Provide the mandatory details and proceed to ‘Submit’.

After this, the EPFO will digitally accept your application and issue a receipt number against the record. Next, these applications are forwarded to the corresponding employers who need to verify them individually via digital signature/ e-sign. The RPFC-II/APFC will investigate each case and send a response to the applicant through a post, email, phone or SMS. 

If the application form is complete, a concerned field officer will cross-check the wage particulars as specified by an employer. Next, provided both the details issued by the employer and the field officer’s findings match, the APFC/RPFC-II will pass EPFO higher pension orders and inform the employer to pay the dues. 

In case of a mismatch, notifications will be sent to both the pensioner and employer, granting them a one-month correction period.

If the application gets turned down, the employer will be provided with a second opportunity to give supplementary evidence or proof. Also, they can propose to correct any noticed mistake before the application is rejected. These opportunities remain active for a maximum of one month, and pensioners are notified if such an intimation is passed on to their employer. 

Documents Needed for Higher Pension Under EPFO

If you want to opt for the EPFO higher pension scheme, consider keeping the below-mentioned documents ready:

• UAN (Universal Account Number)
• Aadhaar-linked phone number
• Aadhaar card
• EPS numbers from all of your organisations, in addition to joining and exit dates from EPS during every instance 
• Join request issued by the employer as per paragraph 26(6) of the Employees’ Provident Fund (EPF) Scheme, 1952
• A copy of the Provident Fund passbook
• Self-declaration stating that you will settle the requisite differential amount via your last employer (if there is a shortfall)

EPFO Guidelines for Higher Pension

When opting for a higher pension option, EPS-enrolled members must adhere to the following guidelines:

• Both the higher pension and joint application forms must include a declaration or disclaimer.
• The concerned employee must provide consent voluntarily in the application form or joint option to state adjustments from their Provident Fund to EPS.
• Additionally, an employee must forward an undertaking of the trustee to facilitate fund transfers from exempted PF trust to the EPF-regulated pension fund. Interest on contributions due to this fund will be calculated up to the payment date as long as the payment is received within the stipulated time.
• An employer's refund of contribution will be added to the interest as mentioned in para 60 of the Employees' Provident Fund scheme. This rule is applicable to all workers in unexempted establishments.  

For seamless processing of EPFO higher pension claims, one needs to upload the below-mentioned documents along with the application form:

• Remittance proof of EPS transaction in the provident fund account exceeding the present wage limit of ₹6,500 or ₹15,000
• Joint option proof certified by the employer filed according to para 11(3) provision
• Written record issued by EPFO or APFC refusing such remittance or request
• Evidence of joint option cross-checked by an employer filed as per para 26(6) of the EPF Scheme, 1952

Besides the documents mentioned above, the concerned employers need to upload the following documents for the joint option application:

• Joint option proof scrutinised by a registered employer filed as per para 26(6) of the EPF plan
• Proof of remittance reflecting EPS contributions in an employee’s PF exceeding their current wage of ₹6,000 or ₹15,000

In addition, the EPFO will generate further circulars specifying the deposit modes and pension computation. Employees can use the dedicated grievance redressal process to file complaints on EPFiGMS regarding issues with higher pension disbursements.

Final Thoughts

The EPFO higher pension initiative will enable eligible employees to boost their pension payouts by keeping aside more amount from their basic salary. With high flexibility, this scheme will allow employees to streamline their retirement path strategically. Therefore, you can opt for this scheme, too, if you have already been enrolled for more than 10 years under the EPS system.  

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