Under the new rules, subscribers can go beyond the pensionable salary, capped at ₹15,000 per month. The Employees Provident Fund Organisation (EPFO) has introduced new guidelines, under which subscribers and employers can jointly apply for higher pension under Employees’ Pension Scheme (EPS).
What Does The New Rule Mean?
According to HT’s sister website Mint, EPFO has now allowed subscribers to go beyond the pensionable salary, capped at ₹15,000 per month. Employers, on the other hand, deduct a sum equivalent to 8.33% of the actual basic salary towards pension under EPS. The pensionable salary cap was increased from ₹6,500 per month to ₹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.
How to opt for higher pension now?
(1.) For applications, a facility will be provided, said the retirement body, adding that for this, the Uniform Resource Locator (URL) will be informed.
(2.) Each application will be registered and digitally locked; the receipt number will be provided to the applicant.
(3.) Each case of joint option on higher salary shall be examined by the office in-charge of the concerned regional provident fund (PF) office.
(4.) An email/post will be sent to the applicant informing him/her of the decision on the application. Later, an SMS may also be sent.
(5.) Grievance, if any, can be registered on the EPFiGMS (grievance portal) after submitting the joint option form, and payment of due contributions (if any).
(6.) To avail enhanced benefit in the application form, the eligible subscribers will have to jointly apply with their employers.
(7.) The deadline to apply for higher pension is March 3.