EPFO: PENSION ON HIGHER WAGES:

 

OUR UNDERSTANDING AS PER EPFO NOTIFICATION DT.20.02.2023:👇🏻

As per Notification dated 20.02.2023 issued by EPFO in regard to Pension on Higher Wages, it covers employees working now and retired after 01/09/2014.

Below are some of the prominent guidelines as per the Notification dated 20.02.2023, in addition to many other points mentioned in the Notification:

1) Create awareness to your employees on Pension on higher wages.

2) Check whether the employees were contributing PF contribution more than the ceiling limit (5000/6500/15000 from time to time).

3) EPFO will provide a link in the EPFO portal to apply for a higher pension to the employees who joined before 01/09/2014 and working now or retired.

4) They should give Joint option for higher pension under para 11(3) - The specific format is yet to be released by EPFO, but in the circular it is mentioned that it should contain disclaimer and declaration as specified in Circular dated 20.02.2023.

5) They should give undertaking for adjustment of funds from PF to pension and explicit consent of the employee should be there in Joint option form for this. i.e. Joint option form must contain consent for higher pension, disclaimer and undertaking to adjustment of funds to pension.

6) Exempted establishment, trustee should give undertaking for transfer of funds with interest to pension.

7) How to deposit? How to calculate the amount and interest? - further circular will be released.

8) Joint Option should be verified by the Employer/Authorized Signatory/HR Manager based on the contributions made.

9) Shortly, EPFO will circulate the url/portal (one of the url is already available in the EPFO Portal) to apply to eligible employees and employees retired after 01/09/2014.

10) All the applications to be submitted only through digital, no manual applications. But it is suggested that to be on the safer side, please submit hard copies of the applications along with all the applicable supporting documents as mentioned in the Notification dated 20.02.2023 and send it either personally or through Regd. Post Ackn. Due or Speed Post to the jurisdictional EPF Office.

11) Please ensure that KYC is approved and Nomination has been done before submission of the application for pension on higher wages.

12) Also gather all the previous year's EPF deduction data & details from their date of joining/date of contribution, which were reflected in Contribution Card in Form 3A of each employee and in Annual Returns in 6A of EPF Act and the connected documents immediately.