The deadline to apply for a higher pension under the Employees’ Pension Scheme (EPS) will end on Monday, 26 June 2023. The Employees’ Provident Fund Organization (EPFO) has recently addressed many doubts regarding the calculation and documentation. As the deadline approaches, applicants are in a hurry to complete their registration process. However, according to media reports, most of them are facing some issues and technical problems in submitting the application through EPFO’s unified portal.
Deadline extension
EPFO has extended the deadline for higher pension applications by three times from the last date of March 4
The retirement fund company recently issued circulars regarding all the documents that can be submitted, and the methodology for calculating a pension on a higher salary.
The formula for calculating a higher pension for those who retired before 1 September 2014
The pension will be calculated based on the average monthly salary drawn during the period of service contributions in the period of 12 months before the date of retirement from membership of the pension fund.
The formula for calculating a higher pension for those who retired/will retire on or after 1 September 2014
The pension will be calculated based on the average monthly salary drawn during the contributory period of service in the period of 60 months before the date of retirement from membership of the pension fund.
Who should choose higher EPS?
According to Archit Gupta, Founder, and CEO, Clear if taxpayers are looking at higher pension income (which is fully taxable, while full EPF withdrawal is tax free), they can opt for EPS. This is when they do not need a large corpus in retirement and would prefer a monthly payment assuming they have many years of retirement ahead of them. A person can receive a pension for life, and spouses and children can also receive part of the pension according to eligibility.
Earlier in November 2022, the Supreme Court asked the government to give four months to subscribers to opt for a higher pension.
The EPFO has provided an online facility to submit the opt-in form (with employers) to the subscribers to opt for higher pension till 3 May 2023. The deadline was later extended to 26 June 2023 .
Get all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download the Mint News App for Daily Market Updates.
Less
Updated: 24 June 2023, 02:55 PM IST
Denial of responsibility! greenleaselibrary.org is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – at loginhelponline@gmail.com The content will be deleted within 24 hours.
