PF Eligibility for Higher Pension - Please guide us

Dear Sir Please guide us about PF Eligibility for Higher Pension.
4th February 2023 From India, Warangal

Basically, only those who have paid contributions on higher wages without restricting the same on Rs 15000 (Rs 6500 earlier) will be eligible for higher pension. Therefore, if your PF contribution has been limited to 12% of Rs 15000, then forget about the higher pension.

Again, if you have contributed on higher salary, in order to get higher pension you have to overcome a few other hurdles. The EPFO has interpreted the High Court of Kerala verdict and the Supreme Court verdict in this matter differently to cheat the members. They have started recovering amount over paid to those who are already getting higher pension. They are saying that higher pension will be availbale only to those who had given option in 2014. It was actually challenged in the court and the court has given time to give fresh options. But the EPFO has taken a new turn now. They have created a link in the portal but the same is not accessible to those who have not given option in 2014 or whose higher contribution options were not rejected by the EPFO.

Therefore, in order to know what will happen to you, you will have to wait for the fresh circulars from the EPFO.
4th February 2023 From India, Kannur

Sir,
Contributions on higher wages by employee & employer were made in between 16.11.1995 and 31.08.2014.
But from 01.09.2014 , employee contributions were made on higher wages whereas "employer contribution" limited to 12% of 15000 (550+1250). In this case eligibility for pension on higher wages during 16.11.995 to 31.08.2014 is existing or not? whether the employees are eligible for giving option ?

Thanks & Regards

Kiran Raj
22nd February 2023 From India, Mumbai

No. The employer should contribute on higher wages and the same higher wages should be considered for contribution to pension fund, ie, instead of contributing 8.33% of Rs 15000, the employer should contribute 8.33% of wages higher than Rs 15000. Then only the employee will be able to get higher pension. That is why the EPFO is asking for a joint declaration. The employer's contribution towards EPF being a cost to company and the offer is always on CTC basis, there is no issue as far as an employer is concerned to pay it on higher salary.

Now coming to the case of an employee who is still in service, the period prior to 2014 when he and his employer had paid contributions on higher salary is not relevant because it will be the salary of 60 months preceding the date of retirement that will be considered for pension. But the option that he and his employer will contribute on higher salary should be given now. Does any body know that he will be with the same employer tomorrow and whether the new employer will contribute on higher salary? No. But if the present employer is ready to give joint declaration, you should entertain that. If you do not give option, the chances of getting higher pension will close for ever.
22nd February 2023 From India, Kannur

Dear Rupeshkumar.Kiran,
Pls find the link of Registration request for application form for validation of joint options (Validation of joint options for the employees who had retired before 01.09.2014 and exercised joint option under para 11(3) of EPS Scheme prior to 01.09.2014)
https://unifiedportal-mem.epfindia.g...InterfacePohw/

Pls note that duly signed joint declaration is necessary.
22nd February 2023

Dear Members, Please find attached an EPS option format for pre and post-retirees, as well as a joint option form for a higher pension for the benefit of all. Regards, Suresh
23rd February 2023 From India, Thane

Attached Files (Download Requires Membership)

EPS_Option_format_for_pre_post_retiree_Joint Option Form for higher pension.pdf (2.53 MB, 95 views)

Dear Madhu Sir

The employee was joined in Jan-2014 and his basic is 14000 as on today. Now, if the present employer agreed to contribute PF on higher wages to the employee.

My question is he eligible for higher pension or not in future / present.
23rd February 2023 From India, Warangal

Ok. The first part of the requirement, ie, joined before Sept 2014, is satisfied. But he has been contributing on Rs 14000. Therefore, the second part of the requirement, ie, contributed to EPF on salary above Rs 15000, is not satisfied. But will contribute on higher basic/ actual salary. I need to recheck if this future tense will be permitted or not because all that are extended are as per Constitutional rights that one should be given opportunity once again. Therefore, I doubt he would not get the benefit of higher pension.
24th February 2023 From India, Kannur

Sir Please clarify, he is eligible to higher pension or not, if we contribute on higher basic i.e., more than 15000/- statutory limit.
24th February 2023 From India, Warangal

Para 11(3) of the EPS scheme provided for an option (earlier) to those who were contributing on higher salary. As per that such employees were supposed to give the option with in a certain time, ie, 1st Sept 2014. That was crystalised and the Court allowed time upto 2nd march 2023. That means this option can be given only by employees who has been contributing on higher salary. Please note that "all employees who employees who did not exercise their option but were entitled to do so but could not do so due to interpretation of cut off date (1st Sept 2014).....time is extended for four months....." That means first of all the should be one who has been contributing on higher salary before Sept 2014. Therefore, you are not entitled to get higher pension even if you contribute on higher salary in future
24th February 2023 From India, Kannur