EPFO Extends Deadline For Higher Pension Scheme

The Employee Pension Provident Fund Organisation, or EPFO, has extended the deadline to apply for a higher pension for certain members under the Employee Pension Scheme until May 3, 2023.

The EPFO notified members about the extension of the deadline on the Member e-SEWA portal of the EPFO.  Individuals can access the link for applying for a higher pension online on the unified member portal of EPFO.

The EPFO recently made changes to the Employees’ Pension Scheme that allow some members to receive a higher pension following the Supreme Court order on Nov. 4, 2022, which stated that the deadline for applying for a higher pension was Mar. 3, 2023.

In February, the EPFO announced that those who were members on or before Sept. 1, 2014, and who retired after that date or are currently employed could choose to make a higher contribution to the EPS.

Most salaried employees in India make contributions to the Employee Provident Fund Organisation. The individual contributes 12% of their basic salary, and the employer matches this amount. The employer’s contribution is divided and funnelled into both the Employee Provident Fund and the EPS. The amount that goes into the EPS is 8.33% of basic salary. Till now, the actual contribution has been capped at 8.33% of Rs 15,000, or Rs 1,250. The remaining amount, if any, would go to the provident fund.

Now, if an employee chooses a higher pension, it would take retrospective effect—meaning a portion of the provident fund corpus would move to the pension scheme. Similarly, a retired individual would have to transfer funds back to the EPFO.