Wednesday, February 8, 2023

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EPFO recent news: Pensionable salary will be THIS much in 2023! Check details

EPFO recent news: The retirement fund authority has directed field offices to make the choice of a greater pension available to qualified subscribers in a huge upgrade for EPFO subscribers. Employees’ Provident Fund Organisation (EPFO) has implemented the modification in compliance with a Supreme Court ruling issued on November 4, 2022.

According to an (EPFO recent news) EPFO circular dated December 29, 2022, the national government has directed that the SC order be followed. EPFO has directed field offices to follow “the directions stated in para 44 (ix) of the Supreme Court verdict on November 4, 2022”. This must be completed within the time frame specified. Field offices must also guarantee that the availability of the higher pension option for qualified subscribers is adequately publicised.

The move came after the Supreme Court affirmed the Employees Pension (Amendment) Scheme 2014. The pensionable wage cap was raised from Rs 6,500 to Rs 15,000 per month as a result of the rule amendment. It also allowed members and their employers to contribute 8.33 percent of their real wage (if the cap is surpassed by the salary) to EPS.

All EPS members had six months beginning September 1, 2014, to choose the new scheme. In its order, the Supreme Court granted eligible EPFO subscribers an additional four months to elect the higher pension under EPS-95.

Employees are now have to donate 1.16 percent of their monthly salary if it exceeds Rs 15,000, thanks to a 2014 legislation. The court overturned this requirement. EPFO customers can increase their contributions under the system to receive extra rewards.

A higher pension option is also available to qualified subscribers who:

  • Have made a contribution on actual wage that is greater than Rs 5,000 or Rs 6,500 per month, the current pensionable salary threshold
  • Have exercised or had their request for a higher pension refused by EPFO prior to the 2014 revision to EPS-95.

Need to for eligibility (EPFO recent news)

Subscribers who are qualified for the higher pension option must apply for it jointly with their employer using the application form and all other documentation required, such as a joint declaration.

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