Before September 1, 2014, did you make contributions to the Employees Pension Scheme (EPS)? The Employees Provident Fund Organization has granted you the right to use the joint option for a greater pension (EPFO). The link to the increased pension application is available on EPFO’s unified portal.
There is a lot of uncertainty among EPFO subscribers about whether they should choose the higher pension option as a result of the announcement. While there are various reasons to reject the joint option, there are also compelling reasons to seek a greater pension if you are eligible. May 3, 2023, is the last day to do this.
The following are five compelling arguments to apply for the higher pension option.
1. Increased Pension Amount
You have a one-time opportunity (until May 3) to obtain a greater pension to support your post-retirement life if you started contributing to EPS before September 1, 2014.
According to calculations, someone who earned an average basic wage plus dearness allowance (DA) of Rs 40,000 over the course of the previous five years should expect to get a monthly pension of about Rs 20,000.
The guaranteed pension under EPS may be as high as Rs 50,000 for someone on an average basic salary plus DA of Rs 1 lakh.
2. Easy Application Process
The application process for the Higher Pension link is simple and can be done online through the Unified Portal of EPFO. Members can access the link by logging in to the portal and selecting the “Higher Pension” option from the drop-down menu.
3. No Age Limit
EPFO members of all ages can apply for the Higher Pension link. However, the earlier members apply, the higher their monthly pension amount will be.
4. Flexibility in Contribution
Members can choose to contribute more to their EPS account in multiples of Rs. 1,000 up to a maximum of Rs. 5,000 per month. This provides flexibility to members who wish to increase their pension amount according to their financial situation.
5. Tax Benefits
Contributions made to the EPS are eligible for tax benefits under Section 80C of the Income Tax Act. This means that members can save tax on the additional contribution made to their EPS account.
Useful Article: EPF Higher Pension Scheme: Guidelines, Eligibility, Benefits & Calculation
EPFO members who wish to secure a higher pension amount should consider applying for the Higher Pension link. The process is simple and can be done online through the Unified Portal of EPFO.
Additionally, the flexibility in contribution and tax benefits make this an attractive option for members who wish to secure their future.
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