What is Pension Payment Order (PPO)?

The answer to “What is PPO” is simple. PPO, also known as Pension Payment Order, is a unique 12-digit number designated to every pensioner under the Employee Provident Fund (EPF). This unique 12-digit number acts as a reference number for transactions and communications associated with the or EPS.

The bifurcation of the 12 digit number is like this –

• The first 5 digits of the PPO number represents the code number of the PPO issuing authority.
• The next 2 digits represent the issue year
• The next 4 digits indicate the PPO's sequential number, and
• The last digit acts as a digital check digit.

The PPO number is of utmost importance. Here’s why:

• It enables pensioners to keep a track of their pension, as well as receive it.
• Pension Payment Order Number can come in handy when filing grievances with EPFO (Employee Provident Fund Organization).
• Knowing your PPO number is also mandatory when you are submitting the annual life certificate. Failure to submit a life certificate can lead to pension being stopped.
• A PPO number is also mandatory for receiving pension in a new bank account due to closure of the earlier bank account.

Pension Payment Orders (PPOs) are important for pensioners because they feature a unique identifying number that helps in tracking pension transactions. It helps in the seamless disbursal of pension payments, facilitates pensioners in identifying their payments, and enables submission as well as tracking of any complaints registered with the EPFO (Employee Provident Fund Organisation). The PPO number is also required at the time of submission of life certificate i.e. Jeevan Pramaan Certificate every year. Additionally, the PPO number is necessary to transfer a pension to another bank account, making it a crucial document for retirees to ensure they remain financially stable after retirement.

Your PPO number helps you manage your pension account easily after you retire. It not only helps you get timely payments but also makes other pension-related tasks easier. The following are the key advantages of a PPO number:

By now you know what a Pension Payment Order number is, its importance and how you can find your PPO number if you have lost or misplaced it. However to better understand how you pension from EPF is calculated, you should have better understanding of the EPS or Employee Pension Scheme.

Employee Pension Scheme (EPS) was launched in 1995 with the objective of providing post-retirement financial security to salaried individuals who subscribed and contributed to EPF during their working years. The scheme ensures that the employees get a regular monthly pension when they reach their retirement age. Both new EPF members and existing members can avail the monthly pension benefits of EPS.

The Employees’ Pension Scheme is a retirement scheme in India and is funded through monthly contributions from you and your employer. However, only your employer’s contribution is divided between EPF and EPS.
Check out its contribution structure:

Employee Pension Scheme is a contribution-based scheme and it includes a portion of the EPF contribution made by both the employee and the employer.

The employee contributes a set percentage up to 12% of their basic salary and the dearness allowance every month in the EPF account. While the employer contributes equally, i.e. up to 12% of basic salary and dearness allowance (DA) of the employee into the account. Out of this total contribution equal to 24% of basic salary and DA, 8.67% is contributed towards EPS and the remainder is contributed to the EPF scheme.

If you are a retiree covered under the Employees’ Pension Scheme, you can easily find your PPO number through the EPFO website. Check out the steps below:

• Step 1: Go to the EPFO website and log in.
• Step 2: Click on the ‘Services’ tab and choose the ‘For Employees’ option.
• Step 3: Open the Pensioners’ Portal under the Online Services menu.
• Step 4: Select 'Know your PPO number'. Enter your bank account number or EPF account number.

You may face issues while accessing your PPO details, such as incorrect information or delays. However, you can resolve these problems easily by following the proper steps or contacting the concerned authorities for assistance.
Check out the following ways through which you can fix issues while accessing your PPO details: