The Employees Provident Fund Organization (EPFO) has started a new window for its members who could not enroll for higher pensions in past.
These employees can now go for higher contributions towards EPS, which is at present confined to 8.33 percent of the maximum Rs 15,000 pensionable salary. In the new opened window, Employees get the option to let their employers deduct a sum equal to 8.33 percent of the actual salary towards the Employee Pension Scheme (EPS).
Employees and Employers gets the option to enlist in a Joint Form requesting EPFO to deduct 8.33 percent of actual monthly salary towards EPS. It will secure the accumulation of a larger compilation and higher pension for the subscribers.
The Government increased the Pensionable salary cap to Rs 15,000 from Rs 6500 via an amendment in 2014.
After the rules changes, employers and subscribers were needed to contribute 8.33% of the actual salary. Then, EPFO permitted all its subscribers with a 6 month window to go for the amended scheme for higher pension. Although, a few members missed this chance. That is why a new window has been opened based on a Supreme Court decision in November last year.
Eligibility
As per the circular dated 20th February’2023, these employees together with their employers can sign up the Joint option.
- Who had contributed on salary surpassing the level of wage of Rs 5,000 or Rs 6,500.
- Who did not sign up the Joint option earlier.
- Who were subscribers before 1st Sepetember’2014 and is still a member.
Application Process
- First, Sign up the Joint option form.
- More information will be provided by the Regional PF Commissioners later. All applications will have to be programmatically registered, for which a separate URL facility will be allowed.
EPFO has instructed these Guidelines to be followed
- The Joint option hold the disclaimer and declaration – Regarding share requiring adjustment from Provident Fund to Pension Fund and incase of redeposit to Fund, clear consent of the member will be shown in the Joint option form.
- Regarding transfer of funds from Exempted Provident Fund trust to Pension Fund of Employees Provident Fund Organization (EPFO), an undertaking shall be submitted by the member.
- Regarding subscribers unexempted establishments, refund return of requisite employer’s share of contribution, following shall be deposited with interest decided under paragraph 60 of EPF, 1952, till the time of actual fund.
- The Joint option should hold the proof of remittance of employer’s share in EPF on above earnings surpassing the wage limit of Rs 5000/ Rs 65000 and evidence of Joint option under paragraph 26(6) of EPF scheme.
- The application will be received by employer’s login whose verification will online sign/ e-sign will be required to proceed further.
At present, employees and employers contribute 12 percent of the member’s actual salary and dearness allowance towards Provident Fund. The Employer’s 8.33 percent contribution goes to pension scheme and 3.67% to Provident Fund.
