New pension scheme epfo

New Delhi: The Employees Provident Fund Organisation (EPFO) has intensified its move to introduce a new pension scheme for employees in the organised sector drawing salary of more than Rs 15,000 per month. The new pension scheme is being contemplated for employees with a salary of Rs 15,000 per month (basic pay and DA) and are not mandatorily covered under the Employees' Pension Scheme 1995 (EPS-95) of the EPFO. There are apprehensions that the EPF pension scheme will lose its relevance if the EPFO opts for a pension scheme based on the proportion of investment rather than continuing with pension proportionate to the service period and salary. If the meeting of the high-power committee of the EPFO which is scheduled to take place in Guwahati on March 11 and 12 takes a positive decision then the recommendation would be forwarded to the Union labour ministry. The move comes in the midst of the appeal filed by EPFO and the central government before the Supreme Court against the Kerala high court verdict on granting pension proportionate to salary. Meanwhile, the sub-committee, which was constituted in November for suggesting measures to make PF pension more effective, is expected to submit its report soon. Presently, those drawing a salary of Rs 15,000 can deposit only 8.33 percent as pension contribution. It goes without saying that the pension that an employee gets on this contribution would be meagre. As per the amendment brought by EPFO in 2014, if an employee has a salar...

Government retirement fund body Employees’ Provident Fund Organisation ( The EPFO’s new guidelines come two weeks before the end of the four-month deadline set up by the Supreme Court to enable eligible subscribers to opt for higher pensions under EPS. The deadline to apply for higher pension under EPS was March 3, 2023 as mandated by the Supreme Court judgement. The EPFO has floated a new option for subscribers who couldn’t opt for higher pensions earlier. Under the new option, employees will have the option to let their employers deduct a sum equal to 8.33 per cent of the actual basic salary towards the EPS pension. In 2014, pensionable salary cap was increased from Rs 6,500 per month to Rs 15,000 per month by the EPS amendment of August 2014. The same amendment also allowed members and their employers to jointly contribute 8.33% of their actual salaries towards EPS, if exceeding the cap. But there was a slight issue: While the Centre had raised the pensionable salary cap under EPS to Rs 15,000 from Rs 6500 through an amendment in 2014, employers and members were required to contribute 8.33% of the actual salaries towards the scheme if it exceeded the cap. The EPFO provided all EPS members a six-month window to opt for the amended scheme for higher pension. However, several subscribers missed this opportunity. Hence, a new window has been provided based on a Supreme Court judgement in November 2022. “…all the employees who did not exercise option but were entitled to do ...

EPFO Higher pension deadline: Despite the looming deadline of June 26, 2023, to apply for a higher pension with the Employees Provident Fund Organisation (EPFO), there is still a lack of clarity on the range of issues such as how payment and calculation will be done, how discrepancies between wage records maintained at EPFO level and that maintained at the level of employer will be resolved. Similarly, what would happen if one of the employers is no longer in existence or has merged. Given the confusion, experts say the deadline may be extended again, although chances are low as the deadline has already been extended twice by the EPFO. “The EPFO is expected to issue additional guidance on how the higher pension would be calculated. Further, once the EPFO scrutinises each application, there could be lack of clarity on how transfers from the EPF account to the EPS account will be undertaken and how discrepancies between wage records maintained at EPFO level and that maintained at the level of employer will be resolved. What would happen if one of the employers is no longer in existence or has merged? These are some of the open questions,” said Sowmya Kumar, Partner, INDUSLAW. Will the deadline be extended again? “For those who have retired how the payment and calculations will do done is still not clear, and therefore there are chances that the deadline can be extended again,” said Shantala Kumble, Senior Vice President, International Money Matters, a Sebi-registere...

The Employees’ Provident Fund Organisation (EPFO) earlier this week came out with a procedure to enable subscribers and their employers to jointly apply for higher pension under the employees’ pension scheme (EPS). In November 2022, the Supreme Court had upheld the Employees Pension (Amendment) Scheme 2014, following which the retirement fund body issued a circular in December 2022 to its field officers to implement the SC order on higher pension. Experts explain everything you need to know about the SC order on higher pension: What Was The Supreme Court Order? The Supreme Court had in November 2022 upheld the Employees Pension (Amendment) Scheme, 2014. The Employees Pension (Amendment) Scheme, 2014, of August 22, 2014, had raised the pensionable salary cap to Rs 15,000 a month from Rs 6,500 a month, and allowed members along with their employers to contribute 8.33 per cent of the actual salaries (if it exceeded the cap) towards the EPS. Sanket Jain, partner at Pioneer Legal, “The judgment has offered a one-time relief to employees who were members of the pension scheme as on September 1, 2014 and had been making a higher contribution i.e., contribution on their actual salary if it was higher than Rs 15,000 per month. These employees are now required to give a joint declaration, along with their employer, to the EPFO in order to continue making contributions on the higher amount." What did the Supreme Court Say in Its Judgment In November 2022? Sanjeev Kumar, partner at Lu...

The Employees Provident Fund Organisation (EPFO) earlier this week announced guidelines for employees who want to opt for a higher pension. The move is the result of a Supreme Court on November 4 that allowed employees to contribute up to 8.33 per cent of their actual salaries - as against 8.33 per cent of pensionable salary capped at Rs 15,000 a month - towards pension. The retirement fund body has activated a link on the unified members' portal where EPFO subscribers seeking a higher pension can apply by May 3, 2023. Here are the steps to apply for higher pension: • Log onto the member e-Sewa portal. • The link activated on the website says "Pension on higher salary: Exercise of joint option on or before May 3, 2023". Click on that • It will open a new page, which will have two options. The user needs to click on the second one: Application form for joint options • 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." • The page that will open will ask the user to enter details like UAN, Name, Date of birth, Aadhaar number, Aadhaar linked mobile number and correctly enter the captcha. • After filling the form, there will be an option to 'Get OTP', which will be...

Latest Update: The last date to submit the higher pension application or joint option form has been extended by the EPFO until June 26, 2023 EPFO has hiked the interest rate on the Employees’ Provident Fund to 8.15% for 2022-23 The Employees’ Provident Fund Organisation (EPFO) has allowed its subscribers to opt for a higher pension amount by increasing their contribution towards the Employees’ Pension Scheme (EPS). The new rules allow EPF subscribers to contribute 8.33% of their actual basic pay towards the EPS to earn a higher EPFO pension. Earlier, the pensionable salary was capped at Rs 15,000 per month. The purpose of the EPS is to generate a pension for employees after the age of 58 years. Only those who were members of the EPF as on September 1, 2014, are allowed to opt for a higher pension. The new rules allow subscribers and their employers to jointly apply for a higher pension under the EPS. Eligible EPF members can apply for higher pension by May 3, 2023. What is the existing pension structure? Both the employee and the employer contribute 12% of the employee’s salary to the EPF. ‘Salary’ here means basic salary and dearness allowance taken together. While the employee’s entire part goes to the EPF, the employer’s contribution is split between the EPF (3.67%) and the EPS (8.33%). The contributions are payable on a maximum salary of Rs 15,000. For an international worker, the wage ceiling of Rs 15,000 is not applicable. While an employee can contribute a higher su...

• Home • Elections 2023 • Budget 2023 • Market • Indices • Nifty 50 • Sensex • CaFE Invest • Commodities • IPO NEWS • Investing Abroad • IPOs • Economy • Tech • Auto • SME • Mobility • Industry • Banking & Finance • Education • Money • Insurance • Income Tax • Mutual Funds • Blockchain • Infrastructure • Railways • Aviation • Roadways • India • Defence • Lifestyle • Travel & Tourism • Health • Science • Healthcare • Brand Wagon • Entertainment • Events • Jobs • Sports • IPL 2023 • Multimedia • Photos • Videos • Audio • Web Stories • Auto Web Stories • Infographics • ePaper • Today’s Paper • From The Print • International • Edits & Columns • Opinion • FE 360 • Politics • Economy • Personal Finance Print • Front Page • FE Insight • Fe@Campus • archive The Employees’ Provident Fund Organisation (EPFO) recently introduced a pension calculator for workers covered under the Employees’ Pension Scheme (EPS) 1995. This calculator gives an illustration of the pension amount an employee may receive upon retirement. This article explains key details of the EPS calculator and how it works. The EPS calculator can be used to get an idea of the pension amount for cases where the pension start date is on or after 01-04-2014. How to Make Money By Using Chat GPT: 7 tips The EPS calculator is available on the EPFO website. If you want to know how much pension you may get, following are some inputs that you need to provide for calculation: 1. Date of birth: The member should have completed 58 ...

Synopsis As per the circular, the formula for the calculation of higher pension will be different for those retiring before September 1, 2014, and those retiring after this date. The circular has come after the Supreme Court in its judgement dated November 4, 2022 allowed certain employees to apply for higher pension under the EPS. The Employees Provident Fund Organisation ( Those who retired before September 1, 2014If the pension (EPS) of an eligible applicant started prior to September 1, 2014, then the higher pension calculation will be based on the average monthly pay drawn during the contributory period of service during the 12 months preceding the date of retirement i.e date of exit from the membership of the pension fund Also Read: Why September 1, 2014 is importantIt is important to note that the government revised the pension calculation formula in September 2014. Till August 31, 2014, the average salary during the 12 months preceding the date of retirement, was taken into account. However, from September 1, 2014, the government revised it to 60 months. This change resulted in a lower pension for those retiring on or after this date. Here is an example to understand this. For instance, assuming you joined the EPS scheme in October 2008 and your retirement is in September 2033. Here, the service period is of 25 years (September 2033 - October 2008). The average salary for pension calculation will be calculated on the basis of your average pay in the last 5 years (6...