The Employees’ Provident Fund Organisation (EPFO) provides eligible members an option to apply for a higher pension under the Employees’ Pension Scheme (EPS), 1995, based on their actual salary, even if it exceeds the statutory wage ceiling. Following the Supreme Court judgment in November 2022, EPFO enabled eligible employees and pensioners to exercise this option, subject to specific conditions.
This article explains the eligibility criteria, documents required, and the step-by-step process to apply for a higher pension.
Key Takeaways
- Eligible EPFO members can opt for a higher pension under EPS based on their actual salary, following the Supreme Court judgment in November 2022.
- Employees must have been EPS members before 1 September 2014 and contributed on wages above the statutory ceiling to qualify.
- The application process involves verifying UAN details on the EPFO portal and submitting a joint declaration with the employer if required.
- If approved, additional funds are transferred from the EPF corpus to EPS, and the pension is recalculated based on actual salary and service period.
Understanding Higher Pension Under EPS
Under EPS, pension is normally calculated on pensionable salary up to the wage ceiling (₹5,000 / ₹6,500 / ₹15,000 depending on the period).
However, as per the Supreme Court judgment (November 2022), eligible members who contributed to EPF on actual salary exceeding the wage ceiling may opt for a higher pension based on actual salary, provided:
- They were EPS members before 01 September 2014, and
- They and their employer contributed to higher wages, and
- They apply jointly with the employer (where required).
Also Read: What is EPFO?
Eligibility Criteria for Higher Pension
You may be eligible if:
- You were an EPS member prior to 1 September 2014.
- You continued in service on or after 1 September 2014.
- Contributions were made on a salary exceeding the wage ceiling.
- You have not withdrawn your EPS amount (if retired, specific conditions apply).
Both current employees and certain retired members may apply, subject to EPFO rules.
Also Read : EPFO KYC Update Online
Documents and Details Required
Before applying, keep the following ready:
- UAN (Universal Account Number)
- Aadhaar linked with UAN
- Registered mobile number
- Salary records (if required)
- Joint declaration with employer (if applicable)
- Past EPF contribution details
Also Read: EPF vs EPS
Step-by-Step Process to Apply Online
- Go to the official EPFO website at www.epfindia.gov.in and locate the link related to “Pension on Higher Salary” under the relevant section.
- Enter your UAN and verify it using the OTP sent to your registered mobile number. Once validated, your basic details and service history will appear on the screen.
- Carefully review your employment history and contribution details. Ensure that wages exceeding the statutory ceiling were considered for EPF contributions.
- Where applicable, submit a joint declaration with your employer. The employer may need to digitally approve or verify the application. Upload any required documents as specified on the portal.
- After verifying all details, submit the application online. Save the acknowledgement number for tracking purposes.
Also Read: How to Download EPF Passbook?
What Happens After Submission?
After submission, EPFO will verify the application and confirm eligibility. The employer may be contacted for additional validation if required.
If approved, EPFO will calculate the additional contribution payable. The required amount, along with applicable interest, may be transferred from the EPF account to the EPS account. Pension benefits will then be recalculated based on actual salary and pensionable service.
Processing timelines may vary depending on the regional EPFO office and volume of applications.
