The Employees Provident Fund Organisation (EPFO) has introduced a new set of guidelines, under which subscribers and employers can jointly apply for higher pension under Employees’ Pension Scheme (EPS).
Read here: EPFO sets deadline for subscribers to opt for higher pension set as May 3
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. There is a new window on the unified members’ portal where subscribers seeking a higher pension can apply for it by May 3, 2023.
At present, both employees and employers contribute 12% of the employee’s basic salary, dearness allowance to the EPF. The employee’s contribution goes to EPF while the 12%contribution of the employer is divided as 3.67% to EPF and 8.33% to EPS. The government contributes 1.16% to the employee’s pension.
Steps to apply for the higher pension on EPF portal:
1. Visit the member e-Sewa portal.
2. Click on “Pension on higher salary: Exercise of joint option on or before May 3, 2023”
3. Select “application form for joint options”.
4. Enter the details, including Universal Account Number (UAN), name, Date of Birth, Aadhaar number, Aadhaar-linked mobile number and enter the captcha code.
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5. Click on “Get OTP”. An OTP will be received on the Aadhaar registered mobile number. Enter the OTP.
6. Submit the application.
An acknowledgement number will be generated upon submission of the application form.