New Delhi: Employees’ Provident Fund Organization (EPFO) has extended the last date for submission of applications to opt for a higher pension (EPFO Higher Pension) till July 11. This time period is given to the employees. It has been extended by 3 months for the employer. This is the third time for the employees that the deadline to apply for opting for a higher pension has been extended.
First of all, after the order of the Supreme Court, time was given till March 3, 2023, to choose a higher pension. After this, it was increased to 3 May. The last time it was extended till 26 June. Now it has been changed to 11th July. EPFO said in a statement issued on Monday evening that the eligible pensioners/shareholders have been given a last opportunity of 15 days to settle any kind of problem related to the higher pension.
EPFO statement
According to the statement, any eligible pensioner or EPFO member who is not able to update KYC and is facing difficulty in submitting the application for validation of option/joint option should immediately report the same on ‘EPFI GMS’. According to EPFO, this complaint can be made by going to Grievance Category in ‘High Pension Benefit on High Salary’. Even after this, the record will be safe for the redressal of any complaint.
How is the pension made now?
No provision for pension was made under the EPF and Miscellaneous Provisions Act, 1952. Since the introduction of EPS in 1995, the pension has been given. Money was put into EPS by the employer. No amount was taken from the employee in this. Let’s understand it more clearly. Both the employee and the employer pay 12-12 percent of the employee’s basic salary and dearness allowance to the EPFO. The entire share of the employee goes to the EPFO. At the same time, out of 12 percent of the employer, 8.33 percent goes to EPS (this is a pension fund) and the remaining 3.76 percent goes to EPFO.
What changed for a higher pension?
In 2014, amendments were made to the EPF scheme and employees were also empowered to contribute 8.33% of their actual salary or maximum pensionable salary to EPS. In 2014, the maximum pensionable salary was increased to Rs 15,000. Before that it was Rs.6500. If someone’s actual salary comes out above 15000, then he can put 8.33 percent of it in EPS. The employer who was earlier putting 8.33 percent in this fund will now have to contribute an additional 1.16 percent to the EPS. The Supreme Court issued an order in this regard last month. Significantly, the contribution of employees to EPS will increase the pension but the money going to EPF will decrease. Due to this the lump sum amount received by the employees after retirement will also reduce.
