The employee provident fund organisation (EPFO) has come out with a new procedure that allows opting for a higher pension.
Employers and subscribers can jointly apply for higher pensions under the employees pension scheme. This mans, the employer-employee can jointly request the EPFO to deduct 8.33% of the actual monthly basic salary towards the pension scheme. This will ensure a larger pension corpus.
Who can avail this?
1) Employees who were members before September 1, 2014, and continued to be a member on or after that date
2) Employees and employers who had contributed on salary exceeding the wage ceiling of Rs 5,000 or Rs 6,500
3) Employees and employers who did not exercise the joint option in the previous window while being EPS members
The EPFO’s new guidelines have been issued in compliance with Supreme Court's November 4, 2022 order. The deadline to apply for higher pension under EPS was March 3, 2023, as mandated by the Supreme Court judgement.