Active Stocks
Sat May 18 2024 12:49:03
  1. Tata Motors share price
  2. 952.95 0.76%
  1. Power Grid Corporation Of India share price
  2. 316.85 1.12%
  1. Tata Steel share price
  2. 167.90 0.39%
  1. ITC share price
  2. 436.50 -0.02%
  1. State Bank Of India share price
  2. 821.30 0.42%
Business News/ News / India/  EPFO launches calculator for higher EPS pension additional contribution, check details here
BackBack

EPFO launches calculator for higher EPS pension additional contribution, check details here

Employees can now calculate the money they have to pay to receive a higher pension as the retirement body has released the Excel utility-based calculator to estimate dues that one has to pay.

Around 7.58 lakh individuals joined EPFO for the first time in March. (Photo: Mint)Premium
Around 7.58 lakh individuals joined EPFO for the first time in March. (Photo: Mint)

The Employees’ Provident Fund Organisation (EPFO) launches calculator for higher EPS pension additional contribution for employees from the Employees’ Pension Scheme (EPS)

Employees can now calculate the money they have to pay to receive a higher pension as the retirement body has released the Excel utility-based calculator to estimate dues that one has to pay.

The last date for higher pension is 26 June, 2023. The retirement fund body has also released a set of FAQs for those who are eligible to apply for higher pension.

Where to find the calculator?

Employee can access this calculator from the Member Sewa portal of the EPFO, by clicking on the pension application link. The calculator is available under the Important links head.

How to use this calculator?

To find out the additional amount for the higher pension, employees needs to know the date of joining the Employees’ Provident Fund (EPF) scheme. Employee needs to enter the wage amount from the date of joining the EPF scheme or November 1995, whichever is later.

Users needs to enter wage details till the date of retirement or till February 2023 - whichever is earlier. Once all the wage data is entered into the sheet, it will calculate the additional EPS contribution that one has to pay to make up for the shortfall.

It will also calculate he total interest accrued till March 31, 2023, on this missing contribution at the historical EPF interest application for the concerned months. It will also show the summary of the total amount that will be transferred from the EPF account along with the interest to the EPS account.

“This clarity from the EPFO is very welcome, especially for those who were still deciding on whether or not to opt for the higher pension amount. This calculation will crystallize the actual amount (including the 1.16% additional contribution from the employers contribution and the EPFO declared interest) that will be transferred from the EPF to EPS account and depending on the circumstances, will also inform the employees if they need to make additional payments," said Sowmya Kumar, Partner, Induslaw.

“That being said, the calculation sheet requires the employees to input the monthly wages from the time they joined the EPS Scheme, which again presupposes that the employee has the requisite data ready to input into it. For employees who have been in service for several years and are now close to retirement, gathering this data could be cumbersome and will require some administrative support," he added.

According to reports, Employees Provident Fund Organisation (EPFO) is likely to extend the deadline by three months for higher EPS pension. The EPFO first extended deadline from 3 March 2023, to 3 May 2023. The second time it was extended from 3 May 2023 to 26 June 2023.

Those opting for a higher EPS pension, an additional 1.16% of the actual basic salary above the wage ceiling (currently 15000) amount will go to the EPS account.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed - it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 26 Jun 2023, 03:35 PM IST
Next Story footLogo
Recommended For You