If you are associated with the Employees Provident Fund Organization (EPFO), then this news is very important for you. Actually, the deadline to apply for higher pension under the Employees Pension Scheme (EPS) is getting closer. Its last date is 3 May. It means to say that one has to apply for higher pension by 3rd May.
What is the matter: Actually, in November 2022, the Supreme Court had given an order on higher pension. According to this, all the members of EPFO who are EPS members can now contribute for higher pension with conditions.
Who is eligible for higher pension?
1) Employees who were members under EPS prior to 1st September 2014, and continue to be members on or after that date
2) Employees and employers who paid the contribution on salary in excess of the standard salary limit of ₹5,000 or ₹6,500. Explain that EPS was started in 1995 and under this the higher pensionable basic salary was Rs 5,000 per month. It was later increased to Rs 6,500 and the basic salary to Rs 15,000 per month with effect from September 1, 2014.
As of now, the company’s pension contribution for the employee is 8.33% of Rs 15,000 i.e. Rs 1,250. Even if the basic salary is more than Rs 15,000, the employer’s contribution to the pension is calculated only on the basic salary of Rs 15,000.
How to apply
- EPFO’s https://unifiedportal-mem.epfindia.gov.in/memberinterface/ portal will have to go.
- Here you will see the Pension on Higher Salary tab. Click on this tab.
- In the next step, the option of “Joint Application Form” will also be given.
- After clicking it enter the details asked on the screen. This includes UAN, name, date of birth, Aadhaar number, mobile number linked to Aadhaar and captcha.
- Then click on “Get OTP”.
- One-time password will be sent to your Aadhaar linked mobile number.
- The application will be verified by the employer after its submission by the EPFO official.
If all the details are correct, the amount due will be calculated and an order will be passed to transfer the dues. In case of mismatch, the employer and employee will be informed by EPFO and they will be given a period of one month to complete the information.
Interest rate on PF deposits for FY23 is 8.15%
EPFO increased the interest rate on Employees’ Provident Fund to 8.15% for FY23. This is a slight increase compared to the previous year. Explain that EPF has the highest interest rate in the small savings category.
