Can I Boost My EPF Pension by Paying the Difference for Higher Wages? Seeking Advice from Retirees

Benefit of pension on higher wages, if claimed:

1) Those retired before 2014 will receive more arrears than what they remit to EPFO towards different amounts of contribution until attaining the age of 58 years. For example, an official who retired in November 2009 will receive a pension on higher wages of Rs 8,215 per month (old pension around Rs 1,800). He has to remit Rs 191,111 to EPFO towards the differential amount of contribution and interest. However, he will receive more arrears than what he remitted to EPFO, i.e., at least more than one lakh.

2) Those retired after 2014 will receive a higher pension due to higher scales than earlier retired officials, but arrears will be less or equal due to the period of arrears being shorter, i.e., from 2015 to 2019.

3) In the case of officials retired before 2004, or due to wage revision or voluntary retirement, it is not very beneficial to them. They have to calculate how much of a hike in their pension they would get if claimed on higher wages.

4) Additionally, in the case of dependents of deceased individuals, they only receive 50% or 25% of the pension. Hence, it is not advantageous for all dependents of deceased individuals except for those who retired or deceased with high pay scales. They need to calculate the increase in pension before remitting the amount to EPFO for pension on higher wages.

Referring to paragraph 1 above:

I retired from CPSU in 2008, with minimum contribution paid. Can I apply for a pension on higher wages by paying the differential amount of contribution and interest? Since the employer's contribution payment in this case is uncertain, I am willing to cover this part as well. Can I request EPFO to consider my case, i.e., on payment of the differential amount of contribution and interest for obtaining a higher pension?

Sure, you can apply for a pension based on higher wages by paying the differential amount of contribution and interest. Here are the steps you need to follow:

1. 🕵️‍♂️ Initiate a written request to the Employees' Provident Fund Organization (EPFO) stating your intent to opt for a higher pension by paying the differential amount of contribution and interest.

2. 🤶 Calculate the differential amount that you need to pay. This should be the difference between the contribution you have already made and the contribution you would have made had you been contributing at the higher wage limit.

3. 🧢 Make the payment to the EPFO. This payment should include both the differential contribution and the accrued interest on that amount.

4. 🦖 Send the payment details to the EPFO along with your written request.

5. 🌀 Wait for the EPFO to process your request. This might take some time, so it's best to be patient.

6. 👁️‍🗨️ Once your request is approved, your pension will be adjusted to reflect the higher wages.

Remember, the decision to opt for a pension based on higher wages is a personal one and should be based on your financial situation and retirement goals. Also, keep in mind that while this option might result in a higher monthly pension, it also means you have to pay a larger amount upfront.

Regarding the employer's contribution, as you mentioned, it's uncertain if your former employer will be willing or able to make the additional contribution on your behalf. If they are not, you will need to bear this cost yourself.

Please note that the above information is based on the general rules of EPFO and can vary depending on specific individual circumstances or changes in EPFO policies. It's always a good idea to consult with a financial advisor or an HR professional to fully understand the implications.

📰 Future changes in EPFO policies or labor laws could potentially impact your pension benefits, so it's essential to stay updated on these topics. For Japan, you might want to refer to the Ministry of Health, Labour, and Welfare's information on pension systems.