The Employees’ Provident Fund Organisation (EPFO) has issued an internal circular directing its regional offices on the method to calculate the dues of subscribers who apply for higher PF pension.
According to the circular, 8.33% of employer share on higher pay from November 16, 1995 or from the date the pay exceeds the wage ceiling of ₹6,500 and 1.16% of employer share on higher pay above ₹15,000 per month will be added for calculating dues. Pensioners and currently working people who opt for higher pension will have to pay this amount from their PF contribution.
“The interest to be charged on dues as calculated above shall be the interest earned by the members on their PF accumulations,” the circular said. Another circular to calculate the pension will be released soon. An EPFO official said a separate circular would be issued addressing the general public with details of the method of calculating dues and pension. The step is part of a series of measures taken by the EPFO to implement the Supreme Court order on higher PF pension.
The EPFO had recently extended the date for submitting joint options with employers for availing higher pension till June 26. “In case of acceptance of joint option of members who are still in service and officer in-charge has passed the requisite speaking order, the present employer shall continue to pay pension contribution on higher wages in future also including the increased 1.16% on wages above ₹15,000 per month,” the circular said.
The dues will be calculated by the regional offices after the verification of wage details submitted by the employers. “In case of exempted establishments, the wage details for the entire period and the matching contribution should be available with the exempted establishments and consistent with the records of the Trust,” the circular added. For both exempted and un-exempted establishments, the interest shall not be calculated for inoperative accounts.