Labour Ministry Clarifies How It Will Calculate Pension On Wages
Employees' Provident Fund Organisation (EPFO) had earlier this week extended the deadline to apply for higher pension till June 26, However, ambiguity persisted on how the calculations would work out.
Bringing clarity on the procedure to be adopted for higher pension, it released a clarificatory statement on Wednesday.
“The spirit of the Employees’ Provident Fund & Miscellaneous Provisions Act as well as the Code on Social Security does not envisage contribution from the employees into the pension fund. Accordingly, keeping in mind the letter and spirit of the EPF & MP Act and the Code, it has been decided to draw 1.16 per cent additional contribution from within the overall 12 per cent of the contribution of the employers into the provident fund,” it said.
"The EPFO (Employees' Provident Fund Organisation) has made arrangements for obtaining applications for validation of option/joint option from pensioners/members as per the Supreme Court order on November 4, 2022," the labour ministry added in a statement."
The Supreme Court had earlier permitted the employees who could not submit the options in light of para 11(3) of the pre-amendment scheme, to submit fresh options within a period of four months.
Though the said period expired on 3.03.2023, the same was further extended for two months i.e. up to 3.05.2023. The petitioners in these cases are employees intending to submit their options in the light of directions of the Supreme Court.
The EPF organization made available to the employees the facility to submit the options through online mode by providing necessary links for the same on their website.
