How to opt for higher pension contributions via EPFO website? Read on to find out

EPFO higher pension: Employees who became members before September 1, 2014, contribute 8.33 per cent of Rs 15,000 (i.e. Rs 1,250 per month) to the pension scheme, and the remaining is contributed towards the provident fund.

Here's how to opt for EPFO higher pension, pic- Pixabay

EPFO higher pension: With the deadline for submission of the Joint option form fast approaching, employees who want to opt for a higher pension should submit the form on or before May 3, 2023.

The online joint option form with the necessary documents has been hosted by Employee Provident Fund Office (EPFO) in the unified portal for contributing to higher salaries to the Employees' Pension Scheme (EPS).

Employees who became members before September 1, 2014, contribute 8.33 per cent of Rs 15,000 (i.e. Rs 1,250 per month) to the pension scheme, and the remaining is contributed towards the provident fund.

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Members who joined the provident fund plan after September 2014 are not eligible to make pension contributions.

EPFO: Higher pension contribution

EPFO, one of the world's largest social security institutions, announced a mechanism that will allow subscribers and their employers to request increased pensions under the EPS.

The EPS amendment of August 22, 2014, had raised the pensionable salary cap to Rs 15,000 a month from Rs 6,500 a month and allowed members along with their employers to contribute 8.33 per cent of their actual salaries (if it exceeded the cap) towards the EPS.

EPFO: Who is now eligible for higher pensions?

1) Employees who were members before September 1, 2014, and remained members on or after that date

2) Employees and employers who contributed in excess of the standard pay cap of Rs 5,000 or Rs 6,500.

EPFO: How to apply for higher contribution?

Here is a short step-by-step guide to opting for increased pension contributions

Step 1: Eligible employees who wish to opt for increased pension contributions must submit an application in the prescribed form on the EPFO portal, together with the appropriate paperwork.

The URL is https://unifiedportal-mem.epfindia.gov.in/memberinterface/.

Step 2: The application will be validated by the employer when it is submitted.

Step 3: The EPFO official would next review the application form, and if all facts are correct, the dues would be calculated and an order for transferring the dues would be issued. If there is a mismatch, EPFO will notify the employer and employee, and they will be given one month to complete the information.

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