{"id":52913,"date":"2023-02-28T17:34:06","date_gmt":"2023-02-28T12:04:06","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=52913"},"modified":"2023-02-28T17:34:50","modified_gmt":"2023-02-28T12:04:50","slug":"epfo-new-guidelines-for-higher-pensions","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/epfo-new-guidelines-for-higher-pensions\/","title":{"rendered":"EPFO New Guidelines for Higher Pensions"},"content":{"rendered":"\n<p>The Employees Provident Fund Organization, or\nthe EPFO, came out with new guidelines on 20 February 2023 for employees with\nrespect to higher pensions. The new guidelines provide for the employers and\nsubscribers to jointly apply for higher pensions under the EPS or the\nEmployees\u2019 Pension Scheme. EPFO has now allowed the subscribers to go beyond\nthe current cap by opting for 8.33% of the maximum of \u20b915,000 per month of pensionable salary. &nbsp;Under the new guidelines, the employees will\nhave the option to allow their employers to deduct an amount that is equal to\n8.33% of the actual basic salary for the EPS pension.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/epfo-new-guidelines-for-higher-pensions\/#Reason_for_the_EPFO_guidelines\" >Reason for the EPFO guidelines<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/epfo-new-guidelines-for-higher-pensions\/#EFPO_Guidelines_for_EPFO_Registration_Online_in_India\" >EFPO Guidelines for EPFO Registration Online in\nIndia<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/epfo-new-guidelines-for-higher-pensions\/#Eligibility_for_EPFO_Registration_Online_to_opt_for_Higher_Pensions\" >Eligibility for EPFO Registration Online to opt\nfor Higher Pensions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/epfo-new-guidelines-for-higher-pensions\/#Procedure_for_EPFO_Registration_Online_to_opt_for_Higher_Pensions\" >Procedure for EPFO Registration Online to opt for\nHigher Pensions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/epfo-new-guidelines-for-higher-pensions\/#What_Happens_after_the_Application_Form_is_submitted\" >What Happens after the Application Form is submitted?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/epfo-new-guidelines-for-higher-pensions\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Reason_for_the_EPFO_guidelines\"><\/span>Reason for the EPFO guidelines<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Central Government had earlier increased the pensionable salary cap was increased from \u20b96500 to \u20b915,000 per month by the EPS amendment of 2014. According to the changed rules, members and employers were required to contribute 8.33% of the actual salary towards the scheme in cases where the salary was more than the cap. EPS members were provided with a six-month window by the EPFO to opt for the new scheme for higher pension. However, many subscribers missed this particular opportunity. To remedy this, the Supreme Court, in the case of The Employees Provident Fund Organization and another versus Sunil Kumar and others in November 2022, where the validity of the employees\u2019 pension amendments scheme of 2014 was upheld. It held that all the employees who were eligible but did not exercise the option to opt for the amended scheme due to the interpretation of the cut-off date by the authorities must be given another chance to exercise this option through <strong><a class=\"text-primary\" href=\"https:\/\/corpbiz.io\/epf-registration\">EPFO Registration<\/a><\/strong> online. The Supreme Court also provided that members who are registered before 1 September 2014 and haven&#8217;t yet retired shall be provided an additional period of 4 months to opt for a higher pension through a joint option form. The new EPFO guidelines of February 2023 were released in pursuance of the Supreme Court judgment.<\/p>\n\n\n\n<p>Supreme Court also mandated that the\napplications for EPFO registration online under the new guidelines were\nrequired to be filed online within four months from the date from when the\nruling was passed, that is either on or before 3 March 2023. It is expected\nthat the EPFO shall issue further guidelines regarding the following aspects\npertaining to the online EFPO registration online to avail higher pensions:<\/p>\n\n\n\n<ul><li>Manner\nand form of request to be made by the employee. <\/li><li>Manner\nof reallocation or deposit of funds from the Provident Fund scheme into the\npension scheme along with the interest till the refund date.<\/li><li>Computation\nof pension for such employees.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"EFPO_Guidelines_for_EPFO_Registration_Online_in_India\"><\/span>EFPO Guidelines for EPFO Registration Online in\nIndia<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The EPFO laid out the below mentioned\nguidelines regarding EPFO Registration Online:<\/p>\n\n\n\n<ul><li>The\nrequest to opt for a higher pension shall mention that the form and manner\nshall be decided by the <strong>Regional Provident Fund Commissioner<\/strong><sup><a class=\"text-primary\" href=\"https:\/\/www.epfindia.gov.in\/site_docs\/PDFs\/Updates\/empanelment_advocates_sro_KochiA.pdf\"><strong>[1]<\/strong><\/a><\/sup>.<\/li><li>The\njoint option shall contain a declaration and a disclaimer as may be provided\nfor. In case of share requiring adjustments from the Provident fund into the\npension fund Kama and if any repeat deposit has to be made to the fund, the\njoint option form shall have the explicit consent of the employee.<\/li><li>In\ncase funds have to be transmitted from exempted Provident fund trust into EDPO\u2019s\npension fund, an undertaking from the trustees shall be required to be\nsubmitted. The undertaking shall be that the new contribution, with the\ninterest till the date of payment, shall be deposited within the specified.<\/li><li>In\ncase of an employee from any of the exempted establishments, the refund of the\nshare of contribution by the employer shall be deposited along with interest\nadd the rates as is declared under the EPF scheme of 1952 up to the date of the\nactual refund.<\/li><li>Of\nthe joint option is required to provide a proof of remittance the share of the\nemployer in the Provident fund on higher wages that exceed existing weight\nceiling of \u20b96500 or \u20b95000 along with a proof of the joint option\nas provided under Para 26 of the EPF scheme. This shall be duly verified by the\nemployer. <\/li><li>The\napplication shall go into the account of the employer, where the digital\nsignature or e sign of the employer shall be required for further processing.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Eligibility_for_EPFO_Registration_Online_to_opt_for_Higher_Pensions\"><\/span>Eligibility for EPFO Registration Online to opt\nfor Higher Pensions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The EPFO circular with new guidelines with\nrespect to EPFO registration online to opt for higher pensions provides for the\neligibility criteria to apply for higher pensions. Only those employees that\nqualify for the below mentioned shall be eligible to submit an application to\nopt for a higher pension:<\/p>\n\n\n\n<ul><li>As given\nin the circular, only those employees who were, before 1 September 2014,\nmembers of the Employees Provident Fund, and<\/li><li>Contributed\nto be a member of the Provident Fund Scheme on the salary exceeding \u20b96500 or \u20b95000, either on or after 1 September 2014,\nand<\/li><li>Did\nnot opt for a higher pension under the EPS 95 scheme.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Procedure_for_EPFO_Registration_Online_to_opt_for_Higher_Pensions\"><\/span>Procedure for EPFO Registration Online to opt for\nHigher Pensions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Employees interested in opting for higher\npensions through EPFO registration online, shall have to file a joint form with\nthe employer for availing the added benefits in the form as prescribed by the\nEPFO commissioner along with the requisite documents. The below mentioned steps\nhave to be followed to file the joint form and opt for higher pensions:<\/p>\n\n\n\n<ul><li>The\napplicant is required to visit the official website of the employees Provident\nfund organization.<\/li><li>Once the\nwebsite is open, the applicant shall be presented with the \u201cpension on higher\nsalary- online application of joint option\u201d flash link. The applicant is\nrequired to click on the link.<\/li><li>The\napplicant shall be taken to the next page, which shall have an option for \u201capplication\nform validation of joint option under erstwhile Para (11) (3) and Para (11) (4)\nof EPS 95\u201d. The applicant is required to click the option.<\/li><li>The\napplicant is then required to click on \u201cvalidation of joint option for the\nemployees four members before 1 September 2014 and continue to be members on or\nafter 1 September 2014.\u201d<\/li><li>The\napplicant then shall enter details like PPO number, if the applicable name,\ndate of birth, aadhaar number of the applicant, and aadhaar linked mobile\nnumber. The applicants are also required to fill in the capture and check on\nthe declaration box.<\/li><li>The\napplication form shall be displayed. The disclaimer shall state that the\napplicant has gone through the Supreme Court judgement dated 11 November 2022\nAndrew registering the application in accordance with the directions contained\nin the judgment. The employee undertakes that the pension shall be calculated\nsubject to the form and manner determined under EPS scheme.<\/li><li>The\napplicant is then required to provide details of the member, like email\naddress, mobile number, and then attach joint option along with an undertaking\nby the trust in case the employee is from an exempted establishment.<\/li><li>The\napplicant is then required to file in the contribution details. This shall\ninclude the following:<ul><li>Details regarding whether the member wants to\nuse the accumulation that is available in her Provident Fund Account for\npayment of a contribution for this particular option. <\/li><li>This shall also include details regarding whether\nthe member shall be given the undertaking to deposit a contribution along with\nan interest which will be due till the date of payment by the last employer.\nThis is only when the Provident fund account has an insufficient balance.<\/li><li>They will also be required to attach\ndocumentary evidence as is provided under Para (6) (vii) of the circular,\nnamely, proof of remittance of the share of the employer to the provident fund\non higher wages exceeding the existing wage ceiling of \u20b96500 \u20b95000 along with proof of joint option under\nPara (26) 6 of the EPF scheme which has been verified by the employer.<\/li><\/ul><\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Happens_after_the_Application_Form_is_submitted\"><\/span>What Happens after the Application Form is submitted?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The application form, for EPFO registration\nonline under the new guidelines, when submitted under the time that is\nspecified in the joint option form shall be dealt with in the below mentioned\nmanner by the regional Provident fund commissioner:<\/p>\n\n\n\n<ul><li>The\nfacility shall be provided for which the URL shall be provided shortly. Once\nthe application has been received, the Regional Provident Fund Commissioner is\nrequired to put up adequate notice and banners for the broader publication of\ninformation to the public.<\/li><li>Each\napplication is required to be registered and digitally launched. The receipt\nnumber shall be provided and sent to the applicant.<\/li><li>The\napplication shall land into the account of the employer news e sign out digital\nsignature will be essential for verification for further processing.<\/li><li>The\nregional Provident Fund Commissioner shall cause the application to be\nconverted into an e file as far as possible.<\/li><li>The\ndealing assistant shall examine the documents along with the receipt of the due\namount in the pension fund and send the case to the accounts officer or a\nsupervisor.<\/li><li>The\nconcerned account officer or supervisor shall mark out any discrepancies and\nsend it after duly assessing it to the assistant Provident fund commissioner or\nthe regional Provident fund commissioner-II, who shall decide the case.<\/li><li>The\nparticular assistant Provident fund commissioner, the Regional Provident Fund\nCommissioner-II, will examine each case of the joint option on a higher salary.\nAny decision received must be intimated through email or post to the applicant.\nClear efforts shall also be made to inform the applicant either through\ntelephone or SMS.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Employees Provident Fund Organization, or the EPFO, came out with new guidelines for EPFO registration online on 20 February 2023 for employees with respect to higher pensions. The EPFO guidelines of February 2023 were released in pursuance of the Supreme Court judgement of November 2022, where the validity of the Employees\u2019 Pension amendments scheme of 2014 was upheld. It held that all the employees who were eligible but did not exercise the option to opt for the amended scheme due to the interpretation of the cut-off date by the authorities must be given another chance to exercise this option by filling the form for EPFO registration online to opt for higher pensions. The new guidelines provide for the employers and members to jointly apply for higher pensions under the EPS. EPFO has also allowed the members subscribed to the provident fund to go beyond the current cap by opting for 8.33% of the maximum of \u20b915,000 per month of pensionable salary. The employees now have the option to allow their employers to deduct an amount that is equal to 8.33% of the actual basic salary for the EPS pension. Employers and employees shall have the option to opt for a joint form requesting EPFO to deduct 8.33% from the current monthly salary towards the EPS. This shall allow for higher pensions for employees due to the accumulation of a large corpus. The deadline to apply for higher pensions, as mentioned above, is 3 March 2023.<\/p>\n\n\n\n<p><strong>Also Read<\/strong>: <br><a href=\"https:\/\/corpbiz.io\/learning\/apply-for-epf-registration-online\/\">How To Apply For EPF Registration Online?\n<\/a><br><a href=\"https:\/\/corpbiz.io\/learning\/obtain-gst-registration-in-india\/\">How To Obtain GST Registration In India?<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Employees Provident Fund Organization, or the EPFO, came out with new guidelines on 20 February 2023 for employees with respect to higher pensions. The new guidelines provide for the employers and subscribers to jointly apply for higher pensions under the EPS or the Employees\u2019 Pension Scheme. EPFO has now allowed the subscribers to go [&hellip;]<\/p>\n","protected":false},"author":47,"featured_media":52914,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[212],"tags":[3156],"acf":{"service_id":"15"},"authorName":"Sherin Jose","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/11\/MicrosoftTeams-image-4-e1668575330329.jpg","authorDescription":"Sherin has degrees in Law and English Literature from the University of Delhi. She is adept at legal research and writing and enjoys discussing and analysing important legal developments. Her primary interests lie in Corporate, FinTech and IPR Law and she is always on the lookout for exploring new developments in the area. She is an avid reader who loves classics and contemporary fiction. She likes to travel, bake and obsess over cat videos in her free time.","postViews":2479,"readingTime":7,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/52913"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/47"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=52913"}],"version-history":[{"count":3,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/52913\/revisions"}],"predecessor-version":[{"id":52917,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/52913\/revisions\/52917"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/52914"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=52913"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=52913"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=52913"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}