The Employees Provident Fund Organisation (EPFO) has recently released a set of guidelines for subscribers and employees to seek a higher pension.
EPFO announced that all the eligible members of the provident fund body can now opt and apply jointly with their employers for higher pensions till May 3, 2023. Earlier, the deadline for the application for a higher pension was speculated to be March 3, 2023.
A pension programme was established by the government in 1995 under Section 6A of the EPF Act. According to the Employees Pension System of 1995 (EPS-95), an employer contribution of 8.33% should be made to the pension plan. The maximum monthly pension was set at Rs. 5,000 or Rs. 6,000 by the EPS-95. Employers were required to pay 8.33% of the initial Rs. 5,000 (which was later increased to Rs. 6,500) towards the pension plan.
Higher pension scheme: Eligibility criteria
Employees and employers who had contributed on salary exceeding the wage ceiling of Rs 5,000 or Rs 6,500
Employees and employers who did not exercise the joint option in the previous window while being EPS members
Employees who were members before September 1, 2014, and continued to be a member on or after that date
It must be noted that all those who fall under this eligibility criteria must apply for the EPFO higher pension scheme jointly with their employers, and submit a joint declaration. EPS members will also get a chance to contribute up to 8.33 percent of their basic salary.
The notification issued by EPFO states, “Undertaking shall be to the effect that due contribution along with interest up to the date of payment, will be deposited within the specified period.”
