The Employees’ Provident Fund Organisation (EPFO) on Monday set May 3 as the deadline for subscribers to opt for a higher pension.
The Supreme Court on November 4 allowed another change for employees who were existing EPS members as on September 1, 2024, to contribute up to 8.33 per cent of their actual salaries - as against 8.33 per cent of pensionable salary capped at Rs 15,000 a month - towards pension.
The apex court gave a four-month window to enable opting for higher pensions. The deadline accordingly should have been around March 3, 2023, but EPFO only last week came out with the procedure for opting for higher pension under the Employees’ Pension Scheme (EPS).
“The joint option for employees who were in service prior to September 1, 2014, and continued to be in service on or after September 1, 2014, but could not exercise joint option under the Employees’ Pension Scheme can do so now on or before May 3, 2023,” the EPFO said on its website.
At present, both employees and employers contribute 12 per cent of the employee’s basic salary, dearness allowance and retaining allowance, if any, to the employee provident fund or EPF.
The employee’s entire contribution goes to EPF, while the 12 per cent contribution by the employer is split as 3.67 per cent to EPF and 8.33 per cent to EPS.
The Government of India contributes 1.16 per cent to an employee’s pension, while employees do not contribute to the pension scheme.
