The Employees’ Provident Fund Organisation (EPFO) has eased the process of applying for higher pension for the eligible employees. The EPFO has announced the method of computing pension on higher salary, beyond the statutory limit of Rs 15,000 mandated as per the provisions of Employees’ Pension Scheme (EPS), 1995. The employees can opt for the higher pension on the actual salary and this will be applicable after verification by EPFO’s field officers.

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EPFO has released a circular, which provides a list of documents that an eligible employee should submit along with the joint pension application form. EPFO’s circular also lays down the process to be followed by the field offices to accept applications for higher pension under the EPF scheme. This circular is aimed at providing more clarity on how to claim higher pension.

The circular, which was released on June 14, is applicable for those eligible employees who cannot show proof of joint request/undertaking/permission from their employer.

In its November 2022 order, the Supreme Court had ruled that employees who were part of the EPF scheme before or on September 1, 2014, but could not apply for higher pension, can now submit fresh applications within four months. The last date for the same was later extended up to June 26, 2023.

The EPFO field offices can now accept applications for higher pension under the EPF scheme. The field officers will have to follow due procedure as mentioned below:

  • It should be verified that an employer’s share of provident fund contribution has been remitted on employee’s pay exceeding the statutory wage ceiling of Rs 5000/Rs 6500/Rs 15000 per month.
  • The remittance should be calculated from the day the pay exceeded the wage ceiling or Nov 16, 1995, whichever is later, till date/till the date of retirement or superannuation.
  • Field offices should see that administrative charges payable by the employer have been remitted on such higher wages.
  • EPF account of employee should be updated with interest according to Para 60 of EPFS, 1952, on the basis of such contribution received

 

EPFO field offices need to ensure that at least one of the following documents is submitted along with the joint pension application form:

  • Wage details submitted by the employer along with applications for validation of option/joint options
  • Any salary slip/letter authenticated by employer
  • Copy of joint request and undertaking from employer
  • Letter from PF office, issued before 4.11.2022, indicating PF contribution on higher wages