The Employee Provident Fund Organisation (EPFO) has introduced a new process that helps employers and subscribers to jointly apply for higher pensions under the Employees’ Pension Scheme (EPS). The EPFO’s new guidelines have been issued in compliance with Supreme Court's November 4, 2022 order. The deadline to apply for higher pension under EPS was March 3, 2023, as mandated by the Supreme Court judgement.

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The EPFO order said that existing employees and those who were members of EPS as on September 1, 2014, can claim higher pension based on actual salary beyond the prescribed ceiling in the EPS of 1995.

What's the EPFO order?

The EPFO has now allowed subscribers to go beyond the pensionable salary capped at Rs 15,000 a month on which employers deduct a sum equal to 8.33 percent of the ‘actual basic salary’ towards pension under EPS. Simply put, this means that an employee and an employer can sign up together, requesting the EPFO to deduct 8.33 percent of the higher monthly basic salary, thus ensuring larger accumulation towards pension over their work life.

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Who can apply?

According to the EPFO circular, the following employees along with their employers can submit the joint option to the concerned regional office –

Employees and employers who had contributed on salary exceeding the wage ceiling of Rs 5,000 or Rs 6,500

Employees and employers who did not exercise the joint option in the previous window while being EPS members

Employees who were members before September 1, 2014, and continued to be a member on or after that date

How to apply?

The eligible subscribers would have to apply jointly with their employer for the enhanced benefit in the application form prescribed by the commissioner and all other required documents like joint declaration etc.

More details related to timelines of the application process will be provided by the Regional PF Commissioners soon. All applications will have to be digitally logged, for which a separate URL facility will be provided by the EPFO, the circular said.

An email/post will be sent to the applicant informing him/her of the decision on the application. Later, an SMS may also be sent. Grievance, if any, can be registered on the EPFiGMS (grievance portal) after submitting the joint option form, and payment of due contributions (if any).

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First Published:Feb 21, 2023 12:17 PM IST