EPFO higher pension calculation of dues: The Employees Provident Fund Organisation (EPFO) has issued details of how the dues will be calculated for the processing of applications/joint applications for higher pensions.
For higher pension, some amount from the eligible members’ provident fund will be moved to the pension fund. Following are the details of how such dues will be calculated:
The Field Office will be calculated the dues after the verification of wage details submitted by the employer (S) and taking care of following in the process, according to EPFO circular dated May 11, 2023.
- Each member/pensioner’s case will be processed in a separate file, created in the e-office with clear marking of the Application ID (system-generated acknowledgement number for online application for validation/joint option).
- In the case of exempted establishments, the wage details for the entire period and the matching contribution should be available with the exempted establishments and consistent with the records of the trust.
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The dues will be calculated in the following manner:
a. 8.33% of the employer’s share on higher pay (w.e.f 16-11-1995 or the date the pay exceeds the wage ceiling; whichever is later) will be calculated as per records).
b. 1.16% of employer share on higher pay above Rs 15,000 per month (w.e.f. 01.09.2014) will be calculated as per records towards increased contribution.
c. All amounts already deposited into the Pension Fund will be deducted from the sum of the above two.
d. The interest to be charged on dues as calculated above will be the interest earned by the members on their PF accumulations.
- For un-exempted establishments, the interest will be calculated at the rate declared under Para 60 of EPF Scheme 1952.
- For exempted establishments, the interest will be calculated at the rate declared under para 60 of EPF Scheme, 1952 or at the rate declared by the Trust of exempted establishment from time to time, whichever is higher, if any.
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The EPFO is yet to explain how the higher pension will be calculated. It is expected to soon release a separate circular with details of the method of calculation of higher pension.