I have joined my first company in October 2013, which is a PF trust managed organization. The company was paying me a basic salary of Rs. 11,430 and contributing regularly to my EPF. I joined another company in 2016.
I had enrolled for the higher pension option a few months ago through the EPFO member portal. When the application reached my first company, they rejected my application stating that my PF wages were below Rs. 15,000 (w.e.f. 01 September 2014). They also attached a circular on their rejection email that I have included here.
I did some research and was able to find only the following relevance to Rs. 15,000:
- The contributions are payable on a maximum wage ceiling of Rs. 15,000/-
- The employee can pay at a higher rate, and in such a case, the employer is not under any obligation to pay at such a higher rate.
- To pay contributions on higher wages, a joint request from the Employee and the employer is required [Para 26(6) of EPF Scheme]. In such a case, the employer has to pay administrative charges on the higher wages (wages above Rs. 15,000/-).
- For an International Worker, the wage ceiling of Rs. 15,000/- is not applicable.
I did not find any rule that could be the basis of rejection as stated by the company. If their claim of rejection is correct, please point me to the relevant government circular/mandate/rule. If their claim of rejection is not correct, what should be my next step?
From India, Hyderabad
Acknowledge(0)
Amend(0)
I had enrolled for the higher pension option a few months ago through the EPFO member portal. When the application reached my first company, they rejected my application stating that my PF wages were below Rs. 15,000 (w.e.f. 01 September 2014). They also attached a circular on their rejection email that I have included here.
I did some research and was able to find only the following relevance to Rs. 15,000:
- The contributions are payable on a maximum wage ceiling of Rs. 15,000/-
- The employee can pay at a higher rate, and in such a case, the employer is not under any obligation to pay at such a higher rate.
- To pay contributions on higher wages, a joint request from the Employee and the employer is required [Para 26(6) of EPF Scheme]. In such a case, the employer has to pay administrative charges on the higher wages (wages above Rs. 15,000/-).
- For an International Worker, the wage ceiling of Rs. 15,000/- is not applicable.
I did not find any rule that could be the basis of rejection as stated by the company. If their claim of rejection is correct, please point me to the relevant government circular/mandate/rule. If their claim of rejection is not correct, what should be my next step?
From India, Hyderabad
Acknowledge(0)Amend(0)
In order to qualify for a higher pension, the basic requirement is to contribute to the Provident Fund (PF) on a salary above Rs. 15,000. If your employer has not contributed to the PF on a salary above Rs. 15,000, then you will not be eligible for a higher pension.
From India, Kannur
Acknowledge(0)Amend(0)
4765From India, Kannur
Acknowledge(0)Amend(0)Engage with peers to discuss and resolve work and business challenges collaboratively - share and document your knowledge. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Join & Be Part Of Our Community.
EPFO - Higher Pension Option Form - Final.doc
Epfo-circular-d t-23-sept-2016- declaration-for m-new-form-11.p df