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UPL 670.40↑2.40(0.36%)
Wipro 395.75↑9.55(2.47%)

Rules to returns: What to consider in opting for higher pension from EPS

Factor in both the size of your retirement corpus and the risks in this scheme before taking the leap

Sanjay Kumar Singh Karthik Jerome New Delhi

Premium

The deadline to opt for the higher pension under Employees’ Pension Scheme has been extended to June 26.

5 min read Last Updated : May 12 2023 | 9:44 PM IST

The deadline to opt for higher pension under the Employee Pension Scheme (EPS) has been extended to June 26, 2023. Subscribers should use the additional time to take a well-considered decision regarding whether to go for this option or stay with the current one that offers a higher lump sum from Employees’ Provident Fund (EPF) with lower pension.

Pension will rise

The formula for calculating EPS pension is: pensionable salary (average of basic salary plus dearness allowance over 60 months before retirement) into years of pensionable service, divided by 70. Suppose that a person joined employment on April 1, 2000 and will retire on March 31, 2030. His joining salary is Rs 15,000 per month and grows 8 per cent annually until retirement. His pension under the old scheme would be Rs 4,864. Under the higher pension scheme, it will rise to Rs 57,169.

Are you eligible?