Higher Pension Calculation of Dues: Employees’ Provident Fund Organization has issued detailed information regarding the calculation of arrears.
EPFO has told how you will be able to calculate the arrears of higher pension and how much amount will be given to you under this. If someone has opted for higher pension and is eligible, then money will be transferred from his PF account for higher pension. Let us know how the outstanding amount will be calculated.
How will the outstanding amount be calculated?
According to the circular issued by EPFO on May 11, 2023, the arrears amount will be calculated after verification of the salary details given by the employer by the field office and taking care of some things in the process.
Keeping in mind what things will be calculated
The case of each member or pensioner eligible for higher pension of EPFO will be added in a separate file, which will be created in the e-office for clarity of Application ID. In case of exemption, the information about the salary for the entire period and the information with the institutions getting the contribution exemption should be clear. If all the things are not found according to the records, then there may be a problem in getting the higher pension.
How will the deposit amount be calculated?
- The employer’s share of 8.33 per cent on the higher salary will be calculated as per the records.
- 15,000 per month with effect from March 1, 2014, the employer’s share will be calculated according to the enhanced contribution of 1.16%.
- All amounts already deposited in the Pension Fund will be deducted from the sum of the above two.
- After all calculations, the interest on the outstanding amount will be the interest earned by the members on their PF.
How will the interest be calculated
For non-exempt institutions, the interest will be calculated at the rate declared under Para 60 of the EPF Scheme, 1952. Further, interest for exempted establishments shall be calculated at the rate declared under para 60 of the EPF Scheme 1952 or the rate declared by the Trust of Exempted Establishments from time to time, whichever is higher. Significantly, EPFO is yet to tell how the higher pension will be calculated. Another circular may be issued soon regarding the calculation of higher pension.