EPS News: Last date to increase contribution in pension scheme is near, submit application soon
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Employee pension scheme: Are you a salaried employee and you contribute to your pension account under the Employees’ Pension Scheme (EPS). If yes, then the last date for your pension contribution is nearing. The deadline has been fixed for submission of applications to increase the amount of contribution of employees in the Retirement Pension Scheme. For this, the members of the Employees’ Pension Scheme have been instructed to submit applications in the prescribed format. The applicant along with his employer has to submit a declaration to the Employees’ Provident Fund Organization (EPFO). If the application is not submitted before the last date, the employees will not be able to get more pension after retirement.
what is the last date
In the case of Employees’ Pension Scheme, the Supreme Court has given an option to the employees to opt for enhanced pension coverage. With the decision given by the Supreme Court in November 2022, the deadline has been fixed for applying by choosing the option within 6 months. Earlier the application deadline was set at 4 months, which has been extended to 6 months. This means that it is very important for the members of EPS to submit an application before March 31, 2023, to increase the amount of their contribution to the pension scheme.
How to submit declaration
In one of its orders in November 2022, the Supreme Court had said that the employees who have not exercised the option to join the pension scheme will have to do so within six months. Now the members of the Retirement Savings Scheme, together with their employer, will have to give a declaration to the Employees’ Provident Fund Organization regarding excess contribution to the pension scheme. The declaration has to be submitted in the prescribed format issued by the EPFO office.
Declaration will not have to be submitted on increase in salary
After the decision of the Supreme Court, the employees have got the option of higher contribution for higher pension. However, if the central government increases the minimum wage limit of the employees from 15,000 to 21,000, then the employees will not have to apply in EPFO. This will increase the mandatory contribution of both employees and employers. It is being told that there will be no need to give any kind of declaration on increasing the salary limit. However, the court has cleared the way for the employees to get more pension from its decision.
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