The Employees’ Provident Fund Organisation (EPFO) on Monday set May 3 as the deadline for subscribers to opt for a higher pension. The Supreme Court on November 4 allowed one other change for workers who had been present EPS members as on September 1, 2014, to contribute up to 8. 33 per cent of their precise salaries — as in opposition to 8. 33 per cent of pensionable wage capped at Rs 15,000 a month — in the direction of pension.
The apex court docket gave a four-month window to allow opting for higher pensions. The deadline accordingly ought to have been round March 3, 2023, however EPFO solely final week got here out with the process for opting for higher pension below the Employees’ Pension Scheme (EPS).
“The joint option for employees who were in service prior to September 1, 2014, and continued to be in service on or after September 1, 2014, but could not exercise joint option under the Employees’ Pension Scheme can do so now on or before May 3, 2023,” EPFO stated on its web site.
At current, each workers and employers contribute 12 per cent of the worker’s fundamental wage, dearness allowance and retaining allowance, if any, to the worker provident fund or EPF.
The worker’s total contribution goes to EPF whereas the 12 per cent contribution by the employer is break up as 3.67 per cent to EPF and eight.33 per cent to EPS. The Government of India contributes 1.16 per cent to an worker’s pension, whereas workers don’t contribute to the pension scheme.
EPFO stated, “online facility for filing joint option is coming soon”. Earlier, there have been apprehensions that March 3, 2023, would be the final date for opting for a higher pension.
Last week, EPFO got here out with a process to allow subscribers and their employers to collectively apply for a higher pension below the Employees’ Pension Scheme (EPS).
In November 2022, the Supreme Court upheld the Employees’ Pension (Amendment) Scheme 2014. The EPS modification of August 22, 2014, had raised the pensionable wage cap to Rs 15,000 a month from Rs 6,500 a month and allowed members together with their employers to contribute 8.33 per cent of their precise salaries (if it exceeded the cap) in the direction of EPS.
In an workplace order, EPFO had offered for coping with the ”Joint Option Form” by area places of work of the physique. EPFO acknowledged that (*3*).
It offered that every utility will likely be registered, digitally logged and the receipt quantity will likely be offered to the applicant.
Further, it acknowledged that the workplace in-charge of the regional provident fund workplace involved shall look at every case of joint possibility on higher wage and intimate the choice to the applicant by means of e-mail/publish and later by means of SMS additionally.
EPFO additionally stated that any grievance by the applicant will be registered on EPFiGMS (grievance portal) after submission of his/her joint possibility kind and fee of due contributions, if any.
The order acknowledged that these instructions are being issued in compliance with the order of Supreme Court on November 4, 2022. EPFO has requested its area places of work to present an possibility for higher pension to eligible subscribers in accordance with the Supreme Court order.
According to the EPFO round on December 29, 2022, the central authorities has directed to implement the instructions within the order.
The apex court docket had given all EPS members as on September 1, 2014, six months to opt for the amended scheme.
The apex court docket in its order gave 4 extra months to eligible subscribers to opt for higher pension below EPS-95. The court docket had additionally struck down the requirement within the 2014 amendments mandating worker contribution of 1.16 per cent of the wage exceeding Rs 15,000 per thirty days. This will facilitate the subscribers to contribute higher to the scheme and get enhanced advantages accordingly.
The EPFO round had additionally offered for the higher pension possibility for these eligible subscribers who both contributed on precise wages higher than Rs 5,000 or Rs 6,500 per thirty days prevalent threshold pensionable wage or exercised their possibility for higher pension or their request for higher pension was declined by EPFO authorities earlier than the modification to EPS-95 in 2014.
The eligible subscribers would have to apply collectively with their employer for the improved profit within the utility kind prescribed by the commissioner and all different required paperwork like joint declaration and many others.
