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Employees’ Provident Fund Organization (EPFO) has given time till May 3 to its subscribers to opt for higher pension. EPFO has taken this step keeping in mind the decision of the Supreme Court on November 4, 2022. The Supreme Court had said in its judgment that employees who were members of the Employees’ Pension Scheme (EPS) as on September 1, 2014, would get an opportunity to increase their contribution to 8.33 per cent of the actual salary. The Supreme Court had also given four months time to the employees to opt for higher pension. That deadline was to end on March 3, 2023, but the EPFO has started the process of choosing the option regarding EPS only last week, so its deadline has been extended.
Time to apply till May 3
Employees in service prior to September 1, 2014 and even after that, if they could not exercise the combined option under the Employees’ Pension Scheme, can do so by May 3, the EPFO said on its website. EPFO said that online facility to choose joint option in EPS for higher pension will be introduced soon. At present, both the employee and the employer contribute 12 per cent of the employee’s basic salary, dearness allowance and maintenance allowance, if applicable, to the Employees’ Provident Fund (EPF). Of this, the entire employee’s contribution goes to the EPF, while 3.67 per cent of the employer’s contribution of 12 per cent goes to the EPF and the remaining 8.33 per cent goes to the Employees’ Pension Scheme. The Government of India also contributes 1.16 per cent to the pension of the employee.
Information will be given by e-mail / post and SMS
EPFO has issued a circular to its field offices regarding Joint Option Form. EPFO has said that a facility will be provided, for which the URL (Unique Resource Location) will be informed soon. After this, the Regional PF Commissioner will give public information about this by putting a notice and banner on the notice board. Under this, each application will be digitally recorded as it is registered and an acknowledgment number will also be provided. The in-charge of the Regional Provident Fund Office will review each joint option case. Thereafter, the applicant will be informed about the decision by e-mail/post and subsequently by SMS. The EPFO order states that these instructions are being issued in compliance with the order dated November 4, 2022, of the Supreme Court. EPFO has asked its regional offices to provide higher pension options to eligible subscribers as per the Supreme Court order.
Salary limit raised to Rs 15,000
However, there is no direct contribution from the employee to the pension plan. EPFO had released the details of the process to opt for higher pension last week. It was stated that the subscribers and their employers can jointly apply for higher pension under the Employees’ Pension Scheme (EPS). They have to apply for this on the Integrated Member Portal of the Retirement Fund Organisation. The Supreme Court’s judgment in November 2022 upheld the Employees’ Pension (Amendment) Scheme, 2014. Earlier, the EPS revision of August 22, 2014 raised the pensionable salary limit from Rs 6,500 per month to Rs 15,000 per month. It also allowed the shareholders and their employers to contribute 8.33 per cent of their actual salary (if it exceeds the ceiling) to the EPS.
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