EPFO Higher Pension Scheme: The additional contribution of 1.16 per cent of the basic pay of the subscribers opting for higher pension will be managed by the employers’ contribution to the social security schemes run by the Employees’ Provident Fund Organization (EPFO).
New Delhi: EPFO Higher Pension Scheme: The additional contribution of 1.16 per cent of the basic salary of the shareholders opting for higher pension will be managed by the contribution of employers in the social security schemes run by the Employees’ Provident Fund Organization (EPFO).
Ministry of Labor issued a statement
The Ministry of Labor said in a statement issued on Wednesday evening, ‘Out of the total 12 percent contribution of the employers in the provident fund, it has been decided to take an additional contribution of 1.16 percent.’ The ministry said that the spirit of the EPF and MP Act as well as the Code (Code on Social Security) do not envisage contribution to the pension fund from the employees.
What is the present system, know
At present, the government pays 1.16 percent of the basic salary up to Rs 15,000 as subsidy for contribution to the Employees’ Pension Scheme (EPS). Employers contribute 12 percent of basic salary to social security schemes run by EPFO. Of the 12 per cent contribution by employers, 8.33 per cent goes to EPS and the remaining 3.67 per cent is deposited in Employees’ Provident Fund.
Know what will change for higher pensioners
Now all those EPFO members, who are opting to contribute their actual basic pay over and above the limit of Rs 15,000 per month to get higher pension, will not have to contribute this additional 1.16 per cent towards EPS.
The deadline for choosing higher pension was till May 3.
The Ministry of Labor and Employment has issued two notifications on May 3, 2023, implementing the above (decision). The ministry has said that with the issuance of the notification, compliance of all the instructions of the Supreme Court’s decision of November 4, 2022 has been completed.
