Actually, the rule of contribution in EPFO ​​is clear that 12 percent of the basic salary of the employee will go to EPFO, the same amount will be contributed by the employer. Now, out of the employer’s share, 8.33 per cent is for pension share and 3.67 per cent for provident fund. But no matter how much the basic salary increases, the pension share does not go beyond Rs.1250.

The capping rule on pension share came into force on 1st September, 2014. Many employees opposed this. The matter reached the court. The Supreme Court did not remove the cap, but gave an option to the employees who had joined EPFO ​​till September 1, 2014, to claim their entire pension share i.e. 8.33 per cent pension share.

How much EPS is deducted now?

If you have ever checked your passbook on EPFO, then you must have seen that there is also a column of pension share in it. In that column, either Rs 1250 is entered or it is less than that. The rule is that 8.33 percent of the share that goes to EPFO ​​from the employer’s side goes to pension and 3.67 percent to EPFO. But there is also a default rule that pension share will not be given more than Rs.1250.

However, employees who had joined EPFO ​​on the date of September 1, 2014, have the option to claim the entire 8.33 per cent of their pension share. Means, instead of only Rs.1250, as much as his pension share is actually made, he can include that much in his pension share. Due to this, the pension which is received on retirement, can get more benefit.

For example, if the basic salary of an employee is Rs 1 lakh, then his EPFO ​​contribution will be Rs 12,000. His company will put the same amount in EPFO. By law, the pension share becomes 8330, but the rule is that only 1250 will go to the pension. The rest will go to EPF. But if you choose the option of higher pension, then you can put the entire Rs 8330 in the pension scheme.

How to apply?

If you are eligible for the Higher Pension Scheme and want to apply for it, then you have to apply by visiting the EPFO ​​portal. Necessary documents have to be given. In UAN, just go to the e-Sewa portal and go to the member interface and apply.

After the application is submitted, verification will be sought from the employer of the employee. EPFO officers will verify the application, once everything is correct, the process of transferring the dues will start. If there is any discrepancy in the forms, the employee and his employer will be given one month to rectify it.

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Those who take advantage of Higher Pension Scheme have a chance to apply for it till June 26, that is, if you also want more money in your account, then you have a few more days left. In this, more than 12 lakh have applied so far.

EPFO gave information

Giving information, EPFO ​​has told that its employees should not face any kind of problem. For this reason, it has been decided to start the Higher Pension Scheme. On November 4, 2022, the Supreme Court gave an important decision regarding higher pension. For this, it was asked to choose a new option within four months.

Lumpsum amount may decrease

Let us tell you that if you select the option of higher pension, then by doing so, the amount of money received after retirement may decrease, but your monthly pension will increase. Experts believe that this scheme has both advantages and disadvantages. If you have a few years left in your job, then the employee’s focus should be on lump sum money.

How to apply for higher pension

->> For higher pension, first of all one has to go to the e-seva portal.
>> After that click on Pension on Higher Salary.
>> Now you will reach the new page where you will see 2 options.
>> Those who retire before September 1, 2014 will have to choose the first option.
>> Apart from this, if you are still doing the job, then you have to select the second option.
>> Details like UAN, name, date of birth, Aadhaar, mobile have to be filled.
>> Now OTP will come on your Aadhaar linked mobile number, it has to be entered.

Last week, the pension was increased in 2014.

EPFO ​​had released the details of its process last week. It was told that the shareholders and their employers can jointly apply for higher pension under the Employees’ Pension Scheme (EPS). In November 2022, the Supreme Court upheld the Employees Pension Scheme, 2014.

Earlier, the EPS revision of August 22, 2014 increased the pensionable salary limit from Rs 6,500 per month to Rs 15,000 per month. Also, members and their employers were allowed to contribute 8.33 per cent of their actual salary to the EPS. EPFO has issued a circular in this regard to its field offices.

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The Supreme Court had ruled in November 2022 that those who were members of the Employees’ Provident Fund Organization (EPFO) as on September 1, 2014, can opt for higher pension.

Issuing a statement, the ministry said that this step will reduce the burden of the employees subscribing to the Employees’ Pension Scheme. The Labor Ministry further said that the employees’ contribution to the Pension Fund is not envisaged in the spirit of the Employees’ Provident Fund and Miscellaneous Provisions Act as well as in the Social Security Code. The Ministry said that keeping in view the EPF & MP Act and the Code, it has been decided to take an additional contribution of 1.16% within the total 12% of the employers’ contribution to the Provident Fund.

Court’s instructions

As per the Supreme Court order, employees drawing salary above Rs 15000 can opt to contribute more than 1.16%. The court directed the officials under the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 to make necessary adjustments in the scheme within a period of six months.

The ministry said that all aspects of the matter, including legal and administrative, were examined in detail for implementing this direction. Thereafter, it was decided that since the Code on Social Security, 2020 (the Code) has already been notified, it would be appropriate to bring relevant provisions.

In the notification, the Labor Ministry said that it has taken all actions immediately within the prescribed time limit to comply with the directions of the Supreme Court. Which also includes extending the deadline till June 26 to allow beneficiaries to file for higher pension.

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