EPFO higher pension link activated – Check directly how to apply online, scheme details, circular, and more
Contents News/Article Date:27th February 2023
Relating to which Act: The Employees Provident Funds & Miscellaneous Provisions Act, 1952;
Applicable to which State: All the establishments in the States with PF coverage
Type: The ET Bureau Newspaper report
Pertains to: Establishments and Members of PF Fund
Relevance of this news: Karma Global is in the business of HR Services, Payroll, Outsourcing, and Regulatory Compliances right from its inception in 2004 since then, has brought in a lot of efficiencies and technological upgradations with experts on its roll, to ease the hassles of Payroll Processing, Temp Staffing, On-boarding, Employee Life Cycle, Statutory, Regulatory, and Payroll compliances by providing customized solutions to all its elite clients.
Now Karma Management is also fully into labour compliance for nearly 18 years and is helping both establishments and workers for fulfillment of obligations as per the laws of the land. It has over 200 staff, both direct and indirect on its rolls and operates on pan India basis. Recently, it has diversified into foreign shores as well, into countries like the US, UK, UAE, Canada, Philippines, and Asia for handling payroll, outsourcing, recruitment, and governance.
And in this instance: Now, the EPFO has activated the URL of the unified members’ portal which states that subscribers seeking a higher pension can apply for it by May 3, 2023. “Joint options under erstwhile para 11 (3) and para 11 (4) of EPS 1995 for employees who were in service prior to 1st September 2014 and continued to the in service on or after 01.09.2014 but could not exercise joint option under the erstwhile provision to para 11 (3) of EPS 1995 to be exercised on or before 3rd May 2023,” the EPFO website said.
Subject: EPFO higher pension link activated – Check directly how to apply online, scheme details, circular and more
Appended is the complete news item
EPFO higher pension link activated – Check directly how to apply online, scheme details, circular and more
Source: ET Bureau
Link: https://unifiedportal-mem.epfindia.gov.in/memberinterface/
The Supreme Court in its order dated November 4, 2022, had mandated the EPFO to provide four months to all eligible members to opt for higher pensions. The four-month period for opting for a higher pension was to end on March 3, 2023, however, the last date has now been extended to May 3, 2023.
The retirement body Employees Provident Fund Organization (EPFO) recently came out with a set of guidelines for employees giving them the option to seek a higher pension. The EPFO’s latest guidelines allow members to go beyond the monthly pensionable salary capped at Rs 15,000.
Now, the EPFO has activated the URL of the unified members’ portal which states that subscribers seeking a higher pension can apply for it by May 3, 2023. “Joint options under erstwhile para 11 (3) and para 11 (4) of EPS 1995 for employees who were in service prior to 1st September 2014 and continued to the in service on or after 01.09.2014 but could not exercise joint option under the erstwhile provision to para 11 (3) of EPS 1995 to be exercised on or before 3rd May 2023,” the EPFO website said.
The Supreme Court in its order dated November 4, 2022, had mandated the EPFO to provide four months to all eligible members to opt for higher pensions. The four-month period for opting for a higher pension was to end on March 3, 2023, however, the last date has now been extended by two months.
EPFO higher pension guidelines
Under the EPFO’s revised procedure, subscribers and their employers can jointly apply for a higher pension under the Employees’ Pension Scheme (EPS). This means that now members can contribute 8.33 percent of their ‘actual basic salary’.
In 2014, the pensionable salary cap was hiked to Rs 15,000 per month, up from Rs 6,500 per month by the EPS amendment of August 2014. This allowed members and their employers to jointly contribute 8.33 percent of their actual salaries towards EPS if exceeding the cap.
Higher pension from EPFO: Are you eligible?
In its circular, the EPFO clarified that the following subscribers would be eligible for higher pensions after the Supreme Court ruling:
Existing employees, or those who retired after September 1, 2014, are eligible to claim a higher pension based on actual salary beyond the prescribed ceiling in the Employees’ Pension Scheme (EPS) of 1995.
The employees and employers who had contributed on salary exceeding the prevalent wage ceiling of Rs 5,000 or 6,500.
Subscribers who did not exercise the joint option under the Employees’ Pension Scheme (EPS) of the pre-amendment scheme while being members of EPS-95.
How to apply for a higher pension?
The eligible subscribers would have to apply jointly with their employer for the enhanced benefit in the application form prescribed by the commissioner and all other required documents such as joint declaration etc.
A few days after releasing the guidelines, the retirement body, on its portal, announced that an online facility for employees to file a declaration opting for higher pensions jointly with their employers is “coming soon.”