EPFO Pension Update: EPFO has extended the time by three months for the employer to upload the salary details regarding pension on higher salary.
Employees’ Provident Fund Organization (EPFO) has extended the deadline for joint form validation by 3 months to give companies an opportunity to choose higher pension option for their employees. Earlier, EPFO had fixed September 30 as the last date for joint form validation to choose the option of higher pension.
EPFO had given six months time to the employees to submit the joint option form for higher pension contribution but many employees could not submit the form. The matter went to the Supreme Court, where the Supreme Court had asked the government to give more time to these employees to submit the joint option form.
Request was made to Labor Ministry
The companies had requested for another extension from the Union Labor Ministry, citing technical issues with the EPFO website and difficulty in accessing employee employment details. The Employees’ Provident Fund Organization (EPFO) launched an online portal on 26 February 2023 to allow employees to apply for higher pension, as mandated by the Supreme Court judgment. The last date for submission of joint option was 3 May.
What is Higher Pension Scheme?
EPFO had announced some changes in the Higher Pension Scheme under EPS. According to the new provision, an additional 1.16% contribution from the salary of members opting for higher pension will be taken from the employer’s contribution of 12%. Therefore, if the employee opts for higher pension, the allocation of funds towards EPF and EPS will be adjusted. Due to this, there will be a decrease in the EPF capital, but their EPS balance will increase.
As per the new rule, the employer will contribute 3.67% of the employee’s basic salary up to the salary limit, and above the salary limit, 2.51% (3.67% – 1.16%) of their basic salary, EPF. Will contribute. The employer will also contribute 8.33% of the employee’s basic salary up to the salary limit and 9.49% (8.33% + 1.16%) of the employee’s basic salary above the salary limit towards EPS.
