Joint Option Form for Higher Pension PDF

PDF Name	Joint Option Form for Higher Pension
No. of Pages	3
PDF Size	1.84 MB
Language	English
PDF Category	General
Source / Credits	grse.in
Uploaded By	Pradeep

Joint Option Form for Higher Pension - Summary

Discover how to apply for higher pension benefits with the Joint Option Form for Higher Pension. The Employees Pension (Amendment) Scheme 2014 was upheld by the Supreme Court in November 2022, raising the pensionable salary cap from Rs 6,500 to Rs 15,000 per month. Initially passed on August 22, 2014, this amendment allows both employers and members to contribute 8.33 percent of their actual salaries toward the EPS if their salaries exceed the limit.

Who Can Apply for Higher Pension?

For subscribers of the Employees’ Provident Fund (EPF) who didn’t opt for a higher pension earlier, there’s a new opportunity to do so. Following the Supreme Court’s order on November 4, 2022, the Employees’ Provident Fund Organisation (EPFO) has issued instructions for employees on how to apply for higher pensions.

Understanding the Pension Contributions

The EPS, governed by the EPFO, offers pensions to employees upon reaching the age of 58. Both the employee and employer contribute 12 percent of the employee’s basic salary plus dearness allowance to the EPF. While the employee’s entire contribution goes to EPF, the employer’s contribution is divided as follows: 3.67 percent to EPF and 8.33 percent to EPS. Additionally, the Government of India provides 1.16 percent for an employee’s pension, and employees do not contribute from their PF share towards the pension scheme.

There is still some uncertainty regarding the details of pension contributions for employees who were in service on or before September 1, 2014, but did not opt to link their pension contributions to a higher basic salary. Experts suggest that the option for such employees to choose a higher pension will be implemented prospectively.

You can download the Joint Option Form for Higher Pension PDF using the link given below.

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