EPFO Subscriber Can Opt for Higher pension Now

EPFO Subscriber Can Opt for Higher pension Now

Subscribers of the Employees’ Provident Fund, who had not opted for higher pension under an

earlier window, have been provided another option now. In compliance with the Supreme Court’s

November 4, 2022, order, the Employees’ Provident Fund Organisation (EPFO) Monday issued

instructions to all its regional and zonal offices on the manner in which employees should apply for

higher pensions.

In a nutshell, 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 per cent of the ‘actual basic

salary’ towards pension under the Employee Pension Scheme (EPS). Details regarding method

of deposit, computation of pension will be detailed in subsequent circulars, the EPFO said.

In a February 20 circular, the EPFO had instructed its field officers to allow option for higher

contribution by: one, the employees and employers who had contributed on salary exceeding the

wage ceiling of Rs 5,000 or 6,500; two, did not exercise joint option (by employer and employee)

while being members of Employees’ Pension Scheme (EPS 95); and three, were members prior

to September 1, 2014 and continued to be a member on or after that date. Circular stated that an

online facility will be provided for employees who continued to be a subscriber of EPS on or before

September 1, 2014, details of which will be informed shortly. “Once received, the Regional PF

Commissioner shall put up adequate notice on the notice board and banners for wider public

information,” the circular said