Employees’ Provident Fund Organization (EPFO) has issued an internal circular to its regional offices on how to calculate the dues of subscribers applying for higher PF pension.
According to the circular, 8.33% employer’s share on higher pension with effect from November 16, 1995 or the date when the pensionable salary cap was raised from Rs 6,500 per month to Rs 15,000 per month.
In the 2014 amendment, the government directed that if you contribute to EPS on the basis of actual salary, then the EPFO member will get an additional contribution of 1.16 per cent in EPS on whatever contribution is made to EPS over and above the pensionable salary limit of Rs 15,000. have to contribute.
Explain that every month 12% amount is deducted from the employee’s basic salary and dearness allowance and deposited in the EPF account. The employer also deposits the same amount in the employee’s account. However, the entire contribution of the employer does not go into the EPF account.
A major part of the 12% contribution of the employer goes to the EPF and a part to the EPS account. Employees Pension Scheme 1995 i.e. EPS-95 was implemented on 16 November 1995. Prior to September 1, 2014, there was a cap of Rs 5000/6500 for the maximum contribution in the EPS account. After this the cap was increased to 15,000.
Extended date of application for higher pension
The circular states that the interest to be charged on the arrears as per the above calculation will be the interest earned by the members on their PF. Another circular will be issued soon for the calculation of pension. An EPFO official said that a separate circular will be issued for information on arrears and calculation of pension. Retirement fund body EPFO has extended the application date for opting for higher pension from May 3 to June 26, 2023. EPFO has so far received more than 12 lakh applications for higher pension.
According to the circular, if you fill higher pension for joint application, then after verifying the application with the EPFO office of your area, your salary details are verified with the details present in the EPFO portal. When the verification is done, EPFO will check the remaining money, after that it will proceed to transfer and deposit the order and you will then be selected for higher pension.
