EPFO Higher Pension Scheme 2023
The Workers’ Provident Fund Organization (EPFO) extended the deadline for selecting a higher pension on Monday to May 3. Workers who started working before September 1, 2014, and kept working on or after that date but were unable to exercise their joint option under the Employees’ Pension Plan may now do so before May 3, 2023. Read on to learn more about the EPFO Higher Pension Plan, including highlights, benefits, eligibility criteria, contributions under EPS, factors to consider before choosing a higher pension, steps to apply for an EPFO Higher Pension 2023, and much more.
EPFO Higher Pension 2023
A monthly withdrawal of 12% of an employee’s base pay is sent to the Employees Provident Fund, or EPF (plus any permanent components like DA). Your employer will match this, annual interest will be calculated, and you will get a lump sum payout at retirement. On September 1, 2014, the government implemented many reforms. The 8.33% EPS contribution is calculated using a maximum salary of Rs. 15,000 per month. While your employer’s 8.33 percent contribution may go into the Employee’s Pension Plan or EPS, a separate programme for guaranteed pension payouts after retirement, your 12 percent contribution goes entirely into your EPF account.
These changes were controversial with labor unions, who successfully sued the EPFO in high courts. The verdict of the Supreme Court (SC), which heard the EPFO’s appeal, was issued in November 2022. The salary ceiling at the time was Rs 6,500, although employers might donate more based on real compensation. EPFO Higher Pension 2023, Employees employed after September 1, 2014, earning more than Rs 15,000 per month, was also declared to be ineligible for EPS.
Highlights of EPFO Pension Scheme 2023
| Topic | Description |
|---|---|
| Deadline Extension | The deadline for selecting a higher pension has been extended to May 3, 2023. |
| Eligibility Criteria | To be eligible for the EPFO Higher Pension Scheme, you must have worked for the government before and after September 1, 2014, and registered and activated your account with an employee provident fund organization. You must have worked as a government employee with an employee pension plan for more than ten years and be between the ages of 50 and 58. |
| Application Deadline | The deadline to apply for a greater Workers’ Pension Plan pension (EPS) is March 3, 2023. |
| Factors to Consider | Before selecting a higher pension, consider the cost, as you will need to contribute more to the EPS, and whether the pension amount is taxable or tax-free. |
| Benefits | The EPFO Higher Pension Scheme provides retiring employees with a pension based on their years of service and average salary, which is not affected by market fluctuations. It provides a source of income after retirement. |
| Apply Online | You can apply for the EPFO Higher Pension Scheme 2023 online by clicking on the Apply Online link. |
| PMHelpline Homepage | You can visit the PMHelpline Homepage for more information. |
Higher Pension Options Form EPFO
This EPFO Higher Pension 2023 is for government workers who worked before September 1, 2014, but were unable to activate their accounts under the government pension programme. The deadline to apply for a higher pension after retirement has been extended by EOFO. The new deadline has been set on May 3, 2023. This application procedure and increase in pension money amount is taking place as part of a government plan known as the EPFO Higher Pension Scheme 2023.
Eligibility Criteria for EPFO Higher Pension Scheme
If you wish to receive all of the advantages listed above from the EPFO Higher Pension Plan, you must meet certain qualifying requirements. The qualifying conditions are listed here, so read EPFO Higher Pension 2023 carefully and determine whether you are entitled to a higher pension.
- You must have worked for the government before and after September 1, 2014.
- Only government employees who have registered and activated their accounts with an employee provident fund organization are eligible for a higher pension.
- You must have worked as a government employee with an employee pension plan for more than ten years and be between the ages of 50 and 58 to be eligible for this programme.
Application Deadline for EPFO Higher Pension Program Yojana
People have until March 3, 2023, to apply for a greater Workers’ Pension Plan pension (EPS). Members of the Employees’ Provident Fund Organization (EPFO) will be able to choose a higher pension based on their real basic salary beginning September 1, 2014. This instruction was issued by the EPFO to allow senior members to seek greater pensions and make larger payments to the EPS at 8.33 percent, as opposed to the monthly ceiling of Rs 15,000 in pensionable earnings.
Factors Before Selecting a Larger EPFO Higher Pension Scheme 2023.
Some factors to consider before selecting a higher pension are as follows:
Cost: Selecting a larger pension means contributing more to the EPS. The employer contribution is limited to 8.33% of Rs 15,000 per month; however, you can contribute up to 8.33% of your salary to the EPS (i.e., Rs 1,250 per month). If your monthly salary exceeds Rs. 15,000, you must make an extra voluntary payment to the EPS to earn a larger pension.
Taxable vs. tax-free: It’s vital to remember that the provident fund lump sum is tax-free, but the pension amount is taxed. As a consequence, if you have other sources of income and fall into a higher tax bracket, the amount of your pension will be lowered owing to taxes.
Benefits of EPFO Higher Pension Scheme
The EPFO Higher Pension Plan would provide several benefits to government employees. Some of the most important points are listed here. Be sure to read this article all the way through so you don’t make any mistakes about the Higher Pension Plan since it might influence your future. The Higher Pension Plan pays retiring employees a pension based on their years of service and the average of their salaries. You must meet certain qualifying requirements in order to profit from this plan. This article goes into great depth about it, so make sure to read it all the way through EPFO Higher Pension Scheme.
- If you earn a large salary in your present employment, you will receive a large pension when you retire.
- Because it is based on years of service and average wage, the amount of money you will get after retirement is unaffected by the market.
- This will allow you to live your life regularly even if you have no investment or private business as a source of income after retirement.
| Apply Online Link | Click Here |
| PMHelpline Homepage | Click Here |