One of the documents required to be submitted by an employee opting for a higher pension under the Employees Pension Scheme (EPS) 1995, is a joint option form. The form is to comprise a declaration from both employer and employee for higher contribution towards EPS equal to 8.33% of the actual wages per month in the future.
The last date to submit the application for a higher pension under the EPS is March 3, 2023, which is just seven days away. The Employees’ Provident Fund Organisation (EPFO) issued guidelines on eligibility for and methods of applying for a higher pension for existing employees on February 20, 2023.
Seven days, which includes one weekend, is a rather short period for eligible employees to fully understand the requirements and collect the documents required to apply for a higher pension.
The EPFO circular issued on February 20, says that the EPF commissioner will specify the form and method for eligible employees to submit the application. Further, an online window is yet to be provided to submit the request for a higher pension. An eligible employee has to submit documents such as an undertaking to allow the transfer of funds from the provident fund to the pension fund, proof of the employer’s share in the provident fund on higher wages exceeding the prevalent wage ceiling of Rs 5,000 or Rs 6,500 and the above mentioned joint option form.
With few days left before the deadline and a long list of documents to be gathered for the submission, many employees would prefer an extension of the deadline.
Several experts also opine that there is a need to extend the last date to apply for a higher pension under the EPS. Anshul Prakash, Partner, Employment Labour & Benefits, Khaitan & Co said: “Overall, the EPFO’S approach has been lacking promptness in terms of necessary guidance on the next steps for the beneficiaries. Multiple circulars, beginning December 2022, have led to confusion and the current deadline appears difficult to be met in the absence of general clarity for the beneficiaries. That said, the deadline was set by the Supreme Court and it would be difficult to have EPFO extend it unless the SC intervenes on any further application to be filed by any concerned beneficiaries.”Aarti Raote, Partner, Deloitte India: “Employers had been awaiting clarification and guidance from the EPFO which came as late as February 20. With the deadline being March 3, the eligible employees are fighting against time to ensure the application is made in time. There are others who still have questions and hence the employee will ask for an extension of the period to avail of the benefit.”