EPFO (Employees Provident Fund Organisation) has recently released new guidelines pertaining to pensions. These guidelines bring an important change in the pension calculation process, as they now consider not only the basic salary but also the allowances.
Furthermore, individuals who desire a higher pension can apply for it until June 26. EPF has issued comprehensive guidelines outlining the steps to follow in order to obtain a higher pension. According to these guidelines, allowances will now be taken into account during the pension calculation. It is worth noting that this includes allowances for which no supporting documentation is required.
Allowances under the new guidelines:
As per the latest rules, the allowances will include basic salary, DA, HRA, and retaining allowance. The EPFO has introduced this rule to increase the pension amount. To avail a higher pension, individuals must submit their application by June 26th. Remember, June 26th is the final date for submitting applications.
Who can opt for the Higher Pension Scheme? All EPFO member employees and those who have completed a minimum of 10 years of service are eligible for this scheme. Additionally, employees/employers who have contributed more than Rs. 5000/- or have a higher standard pay of Rs. 6000/- are also eligible to apply.
If you meet the eligibility criteria, you need to apply for the scheme using the prescribed application form and submit the required documents. The last date for application submission has been extended from May 3, 2023, to June 26, 2023.