EPFO sets May 3 as deadline for subscribers to opt for higher pension

This essentially means that an employee jointly with its employer can request the EPFO to deduct 8.33% of the higher monthly basic salary

Eligible members of Employees’ Provident Fund Organisation (EPFO) jointly with their respective employers can apply for higher pension benefits under the employees' pension scheme till May 3 through the unified members’ portal of the organisation.

The URL of the unified members’ portal of the EPFO for “application form for joint options” has been activated and it will be open till May 3.

The country’s social security organisation has started online application days after releasing procedures to enable subscribers and their employers to jointly apply for higher pension under Employees' Pension Scheme (EPS).

“Joint options under erstwhile para 11 (3) and para 11 (4) of EPS 1995 for employees who were in service prior to September 1, 2014 and continued to the in service on or after 01.09.2014 but could not exercise joint option under erstwhile provision to para 11 (3) of EPS 1995 to be exercised on or before May 3, 2023,” according to an update posted on the unified members’ portal of the EPFO.

Also Read | What the higher pension option means for EPFO subscribers

On November 4, 2022, the Supreme Court of India upheld Employees’ Pension (Amendment) Scheme 2014 and asked the EPFO to provide four months to all eligible members to opt for higher pension benefits.

In view of the Supreme Court’s order it was speculated that the deadline for opting for higher pension benefits under the scheme would be March 3, 2023.

As per the Employees' Pension (Amendment) Scheme 2014, which came into force on August 22, 2014, the pensionable salary cap is raised to Rs 15,000 a month from the earlier Rs 6,500 a month. The amended law allows members along with their employers to contribute 8.33 per cent of their actual salaries (if it exceeded the cap) towards EPS.

This essentially means that an employee jointly with its employer can request the EPFO to deduct 8.33 per cent of the higher monthly basic salary. This will lead to higher accumulation towards pension.

According to an EPFO circular, subscribers who either contributed on actual wages higher than Rs 5,000 or Rs 6,500 per month prevalent threshold pensionable salary or exercised their option for higher pension or their request for higher pension was declined by EPFO authorities before the amendment to EPS-95 in 2014, are eligible for applying for higher pension benefits.