Looking for details on the EPFO Higher Pension Scheme 2025? Here, you will find the updated guidelines, benefits, eligibility criteria, and how to apply online for a higher pension through the Employees’ Provident Fund Organization (EPFO). If you started your job before 1 September 2014 and want to increase your pension amount, this guide will help you understand everything clearly.
Overview of the EPFO Higher Pension Scheme
The EPFO Higher Pension Scheme lets eligible employees get a bigger pension after retirement by choosing to contribute more than the usual limit under the Employees’ Pension Scheme (EPS). Normally, pension contributions are limited to a salary of Rs 15,000, but with this scheme, you can opt to pay a higher contribution based on your actual salary, increasing your monthly pension in the future.
Latest Update on EPFO Higher Pension Scheme 2025
EPFO has extended the last date for submitting applications to choose a higher pension up to 11th July 2024. This extension gives employees more time to opt for higher pension benefits under the EPS 1995 scheme. If you started working before 1 September 2014 and haven’t exercised your joint option, make sure to apply before the deadline.
Main Highlights of EPFO Higher Pension Scheme 2025
| Name | EPFO Higher Pension Scheme |
| Who Can Benefit? | Employees who joined EPFO before 1 September 2014 |
| Last Date to Apply | 11th July 2024 |
| Official Website | https://unifiedportal-mem.epfindia.gov.in/memberinterface/ |
Main Benefits of Choosing a Higher Pension
- Receive a larger monthly pension amount after retirement.
- Helps secure your financial needs if you don’t have other income sources.
- Pension amount is fixed and depends on your service years and average salary, and is not affected by market changes.
Who is Eligible for EPFO Higher Pension?
- Employees who are members of EPFO and subscribed to the Employees’ Pension Scheme.
- You should have been a member of EPS for at least 10 years.
- Your age must be at least 50 or 58 years, depending on when you joined EPS.
How Contributions Work in the EPFO EPS
Before 1 September 2014, pension contributions were based on actual salary with no maximum limit. After this date, contributions are capped at Rs 15,000 salary for calculating EPS contribution, which is 8.33% of salary. But if you want a higher pension, you can pay a voluntary additional contribution based on your actual salary to enjoy larger pension benefits.
Important Things to Know Before Choosing Higher Pension
- Extra Cost: You’ll pay more into EPS than before if your salary is above Rs 15,000 because of the added voluntary contribution.
- Tax Differences: EPF lump sums are tax-free, but pension received is taxable income.
- Trade-off: Choosing higher pension means smaller lump sum payment at retirement.
- Family Consideration: In case of death, family gets only 50% of your pension amount, so a larger lump sum could be safer for some.
- Think Long-term: Consider your overall retirement plan before opting for higher pension.
How to Apply Online for EPFO Higher Pension Scheme 2025
- Go to the official EPFO member portal: https://unifiedportal-mem.epfindia.gov.in/memberinterface/
- Look for the link titled “Pension on Higher Salary: Exercise of Joint Option under para 11(3) and para 11(4) of EPS-1995”.
- Choose between the application forms: one for validating joint options for retirees before 1 September 2014, and one for exercising joint options for employees in service as of 1 September 2014.
- Fill the application form carefully with required details and submit.
- You will receive a receipt number after submission. The application will be sent to your employer for digital approval.
- After employer approval, the concerned EPFO unit will review and approve your claim, then notify you via email, phone, or SMS.
How is the Pension Calculated?
Monthly Pension = (Pensionable Salary x Pensionable Service) / 70
- Pensionable Salary: Average of last 60 months’ wages.
- Pensionable Service: Number of years you contributed to EPS.
Note: If you retire at age 58 with more than 20 years of service, 2 years’ additional service will be added. Total service considered is capped at 35 years.
If you want a better retirement income through a higher pension, this scheme is a good way to increase your monthly benefits. Just remember to apply before 11th July 2024 to make sure you don’t miss out on this option.