Dear Sir Please guide us about PF Eligibility for Higher Pension.
From India, Warangal
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16From India, Warangal
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Basically, only those who have paid contributions on higher wages without restricting the same to Rs 15,000 (previously Rs 6,500) will be eligible for a higher pension. Therefore, if your PF contribution has been limited to 12% of Rs 15,000, then forget about the higher pension.
Again, if you have contributed on a higher salary, in order to get a higher pension, you have to overcome a few other hurdles. The EPFO has interpreted the High Court of Kerala verdict and the Supreme Court verdict in this matter differently to deceive the members. They have started recovering the amount overpaid to those who are already receiving a higher pension. They are stating that a higher pension will only be available to those who opted in 2014. This was challenged in court, and the court has granted time to submit fresh options. However, the EPFO has taken a new approach now. They have created a link on the portal, but it is not accessible to those who did not opt in 2014 or whose higher contribution options were not rejected by the EPFO.
Therefore, to understand what will happen to you, you will need to await the fresh circulars from the EPFO.
From India, Kannur
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Again, if you have contributed on a higher salary, in order to get a higher pension, you have to overcome a few other hurdles. The EPFO has interpreted the High Court of Kerala verdict and the Supreme Court verdict in this matter differently to deceive the members. They have started recovering the amount overpaid to those who are already receiving a higher pension. They are stating that a higher pension will only be available to those who opted in 2014. This was challenged in court, and the court has granted time to submit fresh options. However, the EPFO has taken a new approach now. They have created a link on the portal, but it is not accessible to those who did not opt in 2014 or whose higher contribution options were not rejected by the EPFO.
Therefore, to understand what will happen to you, you will need to await the fresh circulars from the EPFO.
From India, Kannur
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Sir,
Contributions on higher wages by employees and employers were made between 16.11.1995 and 31.08.2014. However, from 01.09.2014, employee contributions were made on higher wages, whereas "employer contributions" were limited to 12% of 15000 (550+1250). In this case, is the eligibility for a pension based on higher wages during 16.11.1995 to 31.08.2014 still existing? Are the employees eligible to exercise the option?
Thanks & Regards,
Kiran Raj
From India, Mumbai
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Contributions on higher wages by employees and employers were made between 16.11.1995 and 31.08.2014. However, from 01.09.2014, employee contributions were made on higher wages, whereas "employer contributions" were limited to 12% of 15000 (550+1250). In this case, is the eligibility for a pension based on higher wages during 16.11.1995 to 31.08.2014 still existing? Are the employees eligible to exercise the option?
Thanks & Regards,
Kiran Raj
From India, Mumbai
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No. The employer should contribute to higher wages, and the same higher wages should be considered for contribution to the pension fund. That is, instead of contributing 8.33% of Rs 15,000, the employer should contribute 8.33% of wages higher than Rs 15,000. Only then will the employee be able to receive a higher pension. This is why the EPFO is requesting a joint declaration. The employer's contribution towards EPF is a cost to the company, and the offer is always on a CTC basis, so there is no issue for the employer to pay it on a higher salary.
Now, moving on to the case of an employee still in service, the period before 2014 when the employee and the employer had made contributions based on a higher salary is not relevant. What matters is the salary of the 60 months before the retirement date that will be considered for the pension. However, the option for both the employee and the employer to contribute based on a higher salary should be given now. Nobody can predict if the employee will remain with the same employer in the future or if a new employer will contribute based on a higher salary. But if the current employer is willing to provide a joint declaration, that should be accepted. If the option is not given, the opportunity to receive a higher pension will be lost forever.
From India, Kannur
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Now, moving on to the case of an employee still in service, the period before 2014 when the employee and the employer had made contributions based on a higher salary is not relevant. What matters is the salary of the 60 months before the retirement date that will be considered for the pension. However, the option for both the employee and the employer to contribute based on a higher salary should be given now. Nobody can predict if the employee will remain with the same employer in the future or if a new employer will contribute based on a higher salary. But if the current employer is willing to provide a joint declaration, that should be accepted. If the option is not given, the opportunity to receive a higher pension will be lost forever.
From India, Kannur
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Dear Rupeshkumar Kiran,
Please find the link to the registration request for the application form for the validation of joint options. This validation is for the employees who retired before 01.09.2014 and exercised joint options under para 11(3) of the EPS Scheme prior to 01.09.2014.
URL: [https://unifiedportal-mem.epfindia.gov.in/memberInterfacePohw/](https://unifiedportal-mem.epfindia.gov.in/memberInterfacePohw/)
Please note that a duly signed joint declaration is necessary.
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Please find the link to the registration request for the application form for the validation of joint options. This validation is for the employees who retired before 01.09.2014 and exercised joint options under para 11(3) of the EPS Scheme prior to 01.09.2014.
URL: [https://unifiedportal-mem.epfindia.gov.in/memberInterfacePohw/](https://unifiedportal-mem.epfindia.gov.in/memberInterfacePohw/)
Please note that a duly signed joint declaration is necessary.
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Dear Members, Please find attached an EPS option format for pre and post-retirees, as well as a joint option form for a higher pension for the benefit of all. Regards, Suresh
From India, Thane
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From India, Thane
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Dear Madhu Sir,
The employee joined in Jan 2014, and his basic salary is currently 14,000. Now, if the present employer agrees to contribute to the Provident Fund (PF) based on higher wages for the employee, my question is: will he be eligible for a higher pension in the future or at present?
Thank you.
From India, Warangal
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The employee joined in Jan 2014, and his basic salary is currently 14,000. Now, if the present employer agrees to contribute to the Provident Fund (PF) based on higher wages for the employee, my question is: will he be eligible for a higher pension in the future or at present?
Thank you.
From India, Warangal
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Ok. The first part of the requirement, i.e., joined before Sept 2014, is satisfied. However, he has been contributing Rs 14,000. Therefore, the second part of the requirement, i.e., contributing to EPF on a salary above Rs 15,000, is not satisfied. He will contribute based on a higher basic/actual salary. I need to recheck if this future tense will be permitted because all extensions are based on Constitutional rights, providing an opportunity once again. Therefore, I doubt he will not receive the benefit of a higher pension.
From India, Kannur
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From India, Kannur
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Sir Please clarify, he is eligible to higher pension or not, if we contribute on higher basic i.e., more than 15000/- statutory limit.
From India, Warangal
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From India, Warangal
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Para 11(3) of the EPS scheme provided for an option (earlier) to those who were contributing on a higher salary. As per that, such employees were supposed to give the option within a certain time, i.e., 1st Sept 2014. That was crystallized, and the Court allowed time up to 2nd March 2023. That means this option can be given only by employees who have been contributing on a higher salary. Please note that "all employees who did not exercise their option but were entitled to do so but could not do so due to the interpretation of the cut-off date (1st Sept 2014) ... time is extended for four months ..." That means first of all, they should be the ones who have been contributing on a higher salary before September 2014. Therefore, you are not entitled to get a higher pension even if you contribute on a higher salary in the future.
From India, Kannur
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From India, Kannur
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Example for higher PF calculation.xls x
Higher Pension Eligibility.jpg
HC All - Trainees not covered for PF -2010.pdf