The last date for applying for higher pension for the members of the Employees’ Pension Scheme is near. EPFO has also clarified the pension calculation method for the applicants.
New Delhi: The last date for higher pension application for the members of Employees Pension Scheme (EPS) is near. EPFO has also clarified the higher pension calculation method for the members. In such a situation, the members desirous of contributing more for higher pension should submit the online application as soon as possible.
Last date for higher pension application
According to EPFO, the last date for applying for EPS Higher Pension is 26 June 2023. In such a situation, all the eligible members who want to get higher pension should apply online through the dedicated portal of EPFO. EPFO has also clarified the situation regarding higher pension calculation method.
EPFO has also clarified the higher pension calculation method for EPS members by issuing a circular last week. The formula for higher pension calculation has been prescribed separately for those who retire before 1 September 2014 and those who retire after this date.
Pension calculation method
According to EPFO, if the pension (EPS) of the applicant has started before 1 September 2014, then the calculation of higher pension will be based on the average monthly salary received in the contribution period during the 12 months preceding the date of retirement.
For those retiring on or after September 1, 2014, higher EPS pension will be calculated considering the average salary drawn during the contribution period of service in the period of 60 months preceding the date of retirement.
Understand by example
Understand the higher pension calculation calculation with the example given. Assume you have joined the EPS scheme in October 2008 and your retirement is in September 2033. Here the service period is 25 years (September 2033-October 2008). The average salary for the purpose of pension calculation will be calculated on the basis of your average salary for the last 5 years (60 months).
If you had retired on or before August 31, 2014, then the average salary for higher EPS pension will be calculated on the average salary of the last year of service.
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