EPFO has launched a pension calculator with the aim of relieving the EPS members opting for higher pension from the worry of contribution calculation.
Employees Pension Scheme (EPS) members can now calculate the amount to be paid to get higher pension. Because, Employees’ Provident Fund Organization (EPFO) has released an Excel utility based calculator to estimate the outstanding amount. With the help of this, the member will be able to know that if required, he will make additional payment from EPF balance or from his savings.
The last date to apply for higher pension is today i.e. June 26, 2023. However, the employees opting for higher pension were not sure as to how they would have to pay in order to become eligible for higher pension. EPFO has now launched the calculator (EPFO Pension Calculator) to make it easier for the employees to calculate the payment.
How to download EPFO Excel calculator?
Any employee can get this calculator from the member service portal of EPFO by clicking on the pension application link. The calculator is available on the Portal at ‘Important Link’.
How to use excel calculator for higher pension?
The date of joining the Employees’ Provident Fund (EPF) scheme should be known to the employee to use this calculator. An employee has to enter the wage amount at the time of joining the EPF scheme or from the date of November 1995, whichever is later.
The employee will have to enter the salary details till the date of retirement or till February 2023. Once all the salaries are entered in the data sheet, it will calculate the additional EPS contribution that the EPS members will have to pay. Along with this, the Excel utility will also calculate the interest rate till March 31. The third tab in the excel calculator shows the summary of the total amount that will be transferred from EPF account to EPS account along with interest.
The government had issued a notification on 3 May 2023 that an additional contribution of 1.16% would be taken from the employer’s contribution to the EPF account. Under the EPF scheme laws, both the employee and the employer contribute 12% of the basic salary to the EPF account. 12% of the employee’s share goes to the EPF account. Whereas, out of 12% employer’s share, 8.33% goes to the EPS account and the remaining 3.67% goes to the EPF account.
