EPFO Higher Pension: Big decision on higher pension, money deposited in member’s PF account will decrease, know what is the update – epfo higher pension employers to pay 1.16 percent more from 12 percent pf share
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In a notification issued on Wednesday, the ministry said that this is in accordance with the Supreme Court’s decision of November 4, 2022. The court suspended the decision on the replacement mechanism of 1.16 per cent contribution for six months and asked the authorities to make necessary changes in the pension scheme for this. The ministry also said that the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 has now been merged with the Code of Social Security, 2020. The government has decided to give effect to the provisions of this code with regard to the judgment of the Supreme Court.
who will benefit
The notification states that the members who have applied for joint option under the provisions of paragraph 11 of the Employees’ Pension Scheme, 1995 and if found eligible, the employer’s contribution will be 9.49 of basic pay, DA and retaining allowance. Will be a percentage. Earlier it was 8.33 per cent. In this way, it has been increased by 1.16 percent. This notification will come into effect from January 1, 2014. The increased contribution will be applicable to those employees whose basic pay, DA and retaining allowance will be more than Rs 15,000.
Many types of confusions still remain among EPFO members regarding higher pension. So far only 12 lakh members have applied for it. This is less than two percent of the total number of members. The deadline for choosing the option of higher pension has been extended twice. Now its deadline is 26 June. In the current system, the government pays 1.16 per cent of the basic salary up to Rs 15,000 as subsidy for contribution to the Employees’ Pension Scheme (EPS). The employer contributes 12 percent of the basic salary to the employee’s PF. Of this, 8.33 per cent goes to EPS and the remaining 3.67 per cent is deposited in Employees’ Provident Fund.
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