EPFO Higher Pension Calculation 2023
If you are an EPF member from before 1st September 2014, you will soon have the option to opt for higher pension by contributing 8.33% of your Basic Salary and Dearness Allowance (if applicable) towards Employee Pension Scheme (EPS).
This calculator will help you get some rough idea as how much amount you will need to give back to EPFO and how much additional pension you will get in return.
How to use this calculator?
Below are some of the FAQs to help your enter values
How to get your average Basic plus DA for last 5 years.
More accurate way could be to add salary (Basic plus DA) of last 5 years (60 months) and take its average.
Most simple way would be to use monthly basic plus DA of two years back. Say if you are using this in year 2023, you can use salary of 2021. This is not very accurate but should be sufficient to give you some idea.
How to get current expected pension?
EPFO has a link to get your accurate current pension amount. Click here to get value.
Years of EPF contribution
This is number of years you are contributing to EPF. Consider not just current employer but even previous ones if you have not withdrawn EPF money during job change. Otherwise consider only tenure with current employer.
Please note minimum 10 years contribution is needed to be eligible for pension
Employee Contribution Corpus
Your EPF statement will have two figures. Here you will need to enter current total (with interest) for your own (employee) contribution. This should always be more than Employer contribution as pension contribution goes from Employer contribution.
Employer Contribution Corpus
Your EPF statement will have two figures. Here you will need to enter current total (with interest) for company (employer) contribution. This should always be less than Employee contribution as pension contribution goes from Employer contribution.
If you opt for Higher Pension, amount that you will need to pay back to EPFO will be deducted by your current employer from this “Employer Contribution Corpus” and given to EPFO pension fund.
Assumptions for Calculation
For calculation purpose, it is assumed that there is no Voluntary Pension Contribution ( over and above standard EPF contribution ), no loan taken from EPF, no partial withdrawals.
Pension amounts (old or new) will be starting from retirement age (currently 58)
This calculation is as of date. Amounts would differ when actual implementation is done. This is because all input values will change over period of time. For example, EPF corpus will keep increasing every month.
So use calculator more for getting some rough idea only.
This calculator is not provided or certified by EPFO. This is based on my understanding based on logic which I will detail in separate blog. Also note this is to be used for general information purpose only. Please do not take any financial decision based on the result. I am not responsible for any financial loss due to use of this calculator. Please consult your Financial Advisor or Retirement Advisor for authoritative suggestions.