The government has taken an important step for retired employees under the Employees’ Pension Scheme, bringing clarity on the long-pending issue of higher pension. This new decision ensures that pension will now be calculated on the basis of the employee’s actual salary instead of the earlier capped amount, offering a substantial boost to monthly pension for eligible retirees.
Higher Pension to Be Calculated on Actual Salary
Earlier, EPS-95 pension was calculated using a salary cap, which limited the pension amount even for those who contributed on a higher salary. In the new update, EPFO will compute pension using the actual basic pay plus DA. This shift is expected to significantly increase the pension amount for thousands of retired employees.
Verification Process Underway
EPFO has already begun the process of verifying joint option forms submitted by pensioners and their employers. This verification is crucial because the pension amount will be finalized only after confirming contribution details and salary records. Once the process is completed, EPFO will issue revised pension orders.
Who Will Benefit the Most
Retirees who opted for the higher pension scheme and contributed based on their full salary during service will benefit the most from this decision. Many have been awaiting approval for months, and the government’s move finally brings hope of a fair and increased pension.
What Pensioners Should Do Now
Pensioners are advised to ensure that all necessary documents such as salary slips, contribution proofs, and employer verification are correctly updated in the EPFO system. Regularly checking the EPFO portal for updates will help applicants track the progress of their higher pension request.
A Step Toward Better Retirement Security
This decision marks a significant reform in the pension system. By aligning pension benefits with actual contributions, the government has strengthened financial security for lakhs of retired employees, ensuring they receive the pension they rightly deserve after years of service.