EPFO extends the deadline for firms to submit information about employees who choose a higher pension. The Employees’ Provident Fund Organization (EPFO) extended the deadline for companies to upload wage information online for those choosing greater pensions by five months, to May 31. This extension was granted on Wednesday.
As of July 11, 2023, members had submitted at least 17.49 lakh applications for validation of option or joint option, according to a statement from the Labour Ministry. It stated that over 3.6 lakh applications for joint options or option validation are still awaiting processing from the companies.
The deadline for applying for increased pensions was extended by the EPFO to July 11. After that, companies were granted a further three months until September 30 and then another extension until December 31, while employees had until July 11 to submit their applications.
“The employers were also granted an additional three months to submit wage details etc. online by 30.09.2023, at the latest, in response to representations from Employers & Employers’ Associations requesting an extension of the time period for uploading wage details of applicant pensioners / members.”
Due to numerous requests for an extension of time to upload applicant pensioners’ or members’ wage details made by Employers & Employers’ Associations, this period has been extended until December 31, 2023,” the statement stated.
The Employees’ Pension (Amendment) Scheme, 2014 amendments were upheld by the Supreme Court on November 4, 2022.
This gave employees who were EPS members as of September 1, 2014, an additional opportunity to contribute up to 8.33 percent of their “actual” salaries toward pension, rather than the 8.33 percent of their pensionable salary, which was capped at Rs 15,000 per month.
The EPFO announced last month to its field officers that “the date of commencement of pension will determine the applicable formula for calculation of pensionable service, pensionable salary, and pension.”
It also stated that the pensionable formula for those who choose a higher pension will be calculated in accordance with paragraph 12 of the EPS.
According to the EPFO, pensions for people who retire in the future—let’s say in 2030—will be computed using the terms of the EPS, 1995, which will be in effect “as of the date of the commencement of pension.”
