EPFO Higher Pension: Employees’ Provident Fund Organization has once again extended the deadline to give the job profession the option of choosing higher pension. Experts believe that many types of clarity are still pending regarding the rules of higher pension.
New Delhi. EPFO has extended the last date to apply for higher pension under EPS. Now EPFO account holders will be able to submit applications for higher pension till June 26. Earlier this date was May 3. EPFO announced about this on Tuesday evening only. The Ministry of Labor and Employment has told that till now more than 12 lakh applications have been received for high pension.
According to CNBC-TV18, the retirement fund body is yet to clarify many things in the higher pension matter. Some rules related to pension need to be simplified, so that it is easily understood by the employees. It is possible that for this reason the last date has been extended. Talking to CNBC-TV18, Induslaw partner Vaibhav Bhardwaj had said that not only are people facing technical glitches in choosing the option of higher pension on the portal, but there is also lack of clarity regarding many of its rules.
It is also necessary to follow the order of the court
Apart from this, the Kerala High Court has said in a decision given in April 2023 that a copy of the permission form is very important before giving the option of higher pension through the EPF scheme. EPFO has also extended the last date to comply with this order.
No clear rules for calculation of higher pension
Bhardwaj said that there is still no clarity regarding the mechanism of higher pension and its calculation and how the funds will be allocated so that higher pension can be made available. Also, the employees need guidance to understand it really. Such employees who do not have the record of old wages, they are not able to be sure about their higher pension.
What about those who have left the job
Sandeep Sehgal, Tax Partner, AKM Global, says that there are many misconceptions about the pension calculation formula in the case of higher pension, its allocation if there is a shortage of funds and pension calculation for those who are no longer employed. All these need to be cleared.
The process started in February
EPFO had started the process of giving the option of higher pension in February this year. After the order of the Supreme Court, the process of jointly making the employer and the employees opting for pension was started as subscribers of EPS. Initially, its deadline was kept on 3 March, but later it was extended by 2 months to 3 May.
What is the new rule of pension
EPFO has given the option of choosing higher pension through EPS to the employees who opened PF account after September 1, 2014. Under this, those earning more than 15,000 will also now be given the opportunity to contribute 8.33 per cent to EPS, so that they can get more pension after retirement. However, through this rule, the amount going into the PF account will be reduced and the employee and the employer will have to make a joint agreement regarding this.
