Epf higher pension scheme

EPFO Higher Pension Scheme: The Ministry of Labour & Employment issued a clarification regarding the additional contribution of 1.16 per cent for those who opt for higher pension scheme (EPS). The ministry further said that the spirit of the EPF & MP Act as well as the Code (Code on Social Security) do not envisage contribution from the employees into the pension fund. The Ministry stated that the Supreme Court held the requirement of the members to contribute at the rate of 1.16 per cent of their salary to the extent such salary exceed Rs 15000 per month as an additional contribution under the amended scheme to be ultra vires of the provisions of the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 (EPF & MP Act).

By Press Trust of India: Retirement fund body EPFO has extended the date for filing applications to opt for a higher pension till June 26, 2023. In order to provide a larger window of opportunity and in order to enable all eligible persons to file their applications, the timeline for filing applications would now be till 26th June, 2023, according to a statement. "The EPFO (Employees' Provident Fund Organisation) has made arrangements for obtaining applications for validation of option/joint option from pensioners/members as per the Supreme Court order on November 4, 2022," labour ministry said in a statement. To facilitate this process, online facility has been made available. More than 12 lakh applications have been received till date. The online facility was to remain available only till May 3, 2023. In the meantime, many representations have been received from various quarters seeking extension of time. The issue has been considered and it has been decided that in order to provide a larger window of opportunity and in order to enable all eligible persons to file their applications, the timeline for filing applications would now be till 26th June, 2023, it stated. The timeline is being extended to facilitate and provide ample opportunity to the pensioners/members so as to to ease out any difficulty being faced by them. This has been decided after sympathetically considering the various demands received from employees, employers and their associations, it stated.

By India Today Business Desk: The labour ministry has said the additional contribution of 1.16 per cent of basic wages for subscribers opting for higher pensions will be managed from employers’ contributions to social security schemes run by the Employers Provident Fund Organisation (EPFO). In a statement, the labour ministry said, “It has been decided to draw a 1.16 per cent additional contribution from within the overall 12 per cent of the contribution of the employers into the provident fund.” The ministry said the spirit of the EPF and MP Act, as well as the code (Code on Social Security), do not envisage contributions from employees to the pension fund. Currently, the government pays 1.16 per cent of the basic wages up to Rs 15,000 as a subsidy for contributions towards the Employees Pension Scheme (EPS). As much as 8.33 per cent out of the 12 per cent contributed by employers goes into the EPS and the remaining 3.67 per cent is credited into the EPF. What happens under new higher EPF provision? All EPFO members who are opting to contribute on their actual basic wage – which becomes higher than the threshold of Rs 15,000 per month – for getting higher pension will not have to contribute this additional 1.16 per cent towards EPS. The ministry said this provision is retrospective in nature and in line with the directions given by the Supreme Court. The Ministry of Labour and Employment issued two notifications on May 3, 2023, to implement the decision. Higher EPF Pensio...

EPF higher pension: The Employees Provident Fund Organisation (EPFO) recently came out with a set of guidelines for employees giving them an option to seek a higher pension. The retirement fund body 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. 3) Now, select "Application form for joint options - 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 erstwhile provision to para 11 (3) of EPS 1995 to be exercised on or before 3rd May 2023." 4) Now, enter the details asking on your screen i.e., UAN, Name, Date of birth, Aadhaar number, Aadhaar linked mobile number and captcha. 5) Click on "Get OTP" 6) A one-time password will be sent to your Aadhaar-linked mobile number. What is the present rule for EPS? At present, both employees and employers contribute 12 per cent of the employee's basic salary, dearness allowance and retaining allowance, if any, to the employee provident fund or The employee's entire contribution goes to EPF while the 12 per cent contribution by the employer is split as 3.67 per cent to EPF and 8.33 per cent to EPS. The Government of India contributes 1.16 per cent to an employee's pension, while employees do not contribute to the pension scheme. The Employees Provident Fund Organisation (E...