EPFO subscribers can opt for higher pension now! Check details

Good news for the Employees’ Provident Fund Organisation (EPFO) subscribers. The EPFO subscribers can opt for higher pensions now.

Earlier yesterday, the EPFO issued instructions to all its regional and zonal offices on the manner in which employees should apply for higher pensions. It is to be noted here that the Supreme Court had on November 4, 2022 had ordered EPFO to provide the option to the subscribers.

As per the EPFO’s instruction, the subscribers can go beyond the pensionable salary capped at Rs 15,000 a month on which employers deduct a sum equal to 8.33 per cent of the ‘actual basic salary’ towards pension under the Employee Pension Scheme (EPS). However, the employee and his employer will have to sign up together and request the EPFO to deduct 8.33 per cent.

Meanwhile, activists have raised concerns after the announcement regarding EPFO subscribers can opt for higher pensions. They claimed that the deadline for willing members of the EPS to exercise the option is expiring on March 3.

Besides, the circular by itself would not enable them to give their option, as they have to wait for one more circular of the EPFO and the respective Regional PF Commissioner’s communication on the form and manner of the request for exercising the option. “At least, another two or three days may be taken by the authorities for follow up,” said A.S.R. Namazi, former Chief Law Officer of the Karnataka State Road Transport Corporation (KSRTC).