Epfo Higher Pension Scheme Calculator India

Higher Pension Formula:

\[ Pension = \frac{(Higher\ PS \times PSV)}{70} \]

Pension (Monthly Pension):

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1. What Is The EPFO Higher Pension Scheme?

The EPFO Higher Pension Scheme allows employees to opt for pension calculation based on their actual salary rather than the statutory wage ceiling. This results in higher monthly pension benefits upon retirement for eligible subscribers.

2. How Does The Calculator Work?

The calculator uses the EPFO higher pension formula:

\[ Pension = \frac{(Higher\ PS \times PSV)}{70} \]

Where:

\( Higher\ PS \) — Uncapped pensionable salary (actual salary)
\( PSV \) — Pensionable service in years
\( 70 \) — Standard divisor as per EPFO regulations

Explanation: The formula calculates monthly pension by multiplying the higher pensionable salary with total pensionable service years and dividing by the standard factor of 70.

3. Importance Of Higher Pension Calculation

Details: Calculating higher pension helps employees understand their potential retirement benefits when opting for actual salary-based contributions, enabling better financial planning and retirement security.

4. Using The Calculator

Tips: Enter your actual uncapped pensionable salary in INR and total pensionable service in years. Ensure both values are positive numbers for accurate calculation.

5. Frequently Asked Questions (FAQ)

Q1: Who is eligible for higher pension under EPFO?
A: Employees who exercised the option for higher pension contributions before retirement and had basic salary exceeding the statutory wage ceiling are eligible.

Q2: What is the difference between regular and higher pension?
A: Regular pension uses statutory wage ceiling (currently ₹15,000), while higher pension uses actual basic salary for calculation.

Q3: How is pensionable service calculated?
A: Pensionable service includes all periods of contributory service under EPS, including past service if transferred.

Q4: Can I opt for higher pension after retirement?
A: As per recent Supreme Court directions, eligible employees can apply for higher pension within specified timelines.

Q5: Is there a maximum limit on pension amount?
A: Yes, maximum pension is limited to 50% of the highest average salary drawn during contributory service.