EPFO higher pension deadline EPS scheme last date eligibility EPF

Presently, 8.33 percent of the employer’s contribution goes into EPS fund.

The Employees’ Provident Fund Organisation (EPFO) has released a circular about how the higher pension will be calculated for the eligible employees applying for this. The EPFO has laid out the procedure for approval of the high pension applications under the Employees’ Pension Scheme (EPS), 1995, and the list of documents required for filing the application.

The circular by EPFO released on June 14, 2023, mentions that it is applicable for eligible employees who do not have proof of joint request, undertaking, or permission to get accepted by field offices of EPFO on the stated procedure.

The employees can opt for higher pension as per their actual salary following the Supreme Court’s November 2022 order. As per the existing rules under the EPS the pension is calculated on the statutory salary limit of Rs 15,000. Presently, 8.33 percent of the employer’s contribution goes into EPS fund.

TRENDING NOW

Application verification by EPFO field officers

The applications submitted by the employees for higher pension needs to be verified by the field officers of EPFO. The higher pension will be allowed after successful verification of an employee’s application.

EPFO has laid out the procedure for verifications of the application. As per the latest circular, the field officers are required to verify:

The employer’s share of Provident Fund contribution has been remitted to employees exceeding the prevalent statutory wage limit of Rs 5,000, Rs 6,500, or Rs 15,000 per month from the day they exceeded the wage limit (November 16, 1995), whichever is later to till date or till the date of retirement.
Administrative charges, which were payable by the employer, have been remitted on such higher wages.
The EPF account of the employee has been updated with interest according to Paragraph 60 of EPFS, 1952.
Besides the above mentioned process, the field officer is also required to ensure at least one of the following documents is submitted with the joint pension application form:

Wage details submitted by the employer with the application for validation of an option or joint option
Any salary slip or letter from the employer with authentication
Copy of the joint request and undertaking from the employer.
Letter from the Provident Fund office issued prior to November 4, 2022, indicating the PF contribution on higher wages.
Formula to calculate pension

The formula through which the calculation of pension under EPS scheme is equal to: (average salary of 60 months x service period) divided by 70.

The average salary mentioned in the formula is the basic salary of an employee. However, the salary used for calculation of a higher pension for those applying for a higher EPS pension will be their full actual salary.

Eligibility criteria for higher pension

Salaried workers must open an employee's PF account if their take-home pay is less than Rs 15,000 per month.
Companies with fewer than 20 employees may also join the EPF programme on their own.
Companies with more than 20 employees must register themselves for the EPF programme.
The employees who are getting more than Rs 15,000 monthly salary can open an EPF account with permission from the assistant PF commissioner.
Deadline for applications

The last date for applying for a higher EPS pension is June 26, 2023. The EPFO has provided the option of deleting any higher pension application form that was submitted earlier.

The employees interested to apply for a higher pension on the actual salary can do so only online. The employees can file their applications through the EPFO member portal.

TAGS:

Personal Finance EPFO