NEW DELHI: Employees’ Provident Fund Organization (EPFO) has activated its unified portal for subscribers to enroll in upper pension, however has been thrown into procedural complexities that make it nearly inconceivable to use.
Responding to an RTI Query on February 3, the retirement fund frame mentioned it had now not gained a unmarried utility, for the reason that inception of the scheme in March 1996, for permission beneath a clause now made obligatory to say the advantage of upper pension.
The provision calls for staff and employers to have collectively sought prior permission from EPFO to give a contribution upper quantities on their exact fundamental salaries as an alternative of the prescribed statutory prohibit for provident fund beneath the Employee Provident Fund (EPF) Scheme, 1952.
Over the years, the federal government has been elevating the pf contribution ceiling, which was once Rs 5,000 until June 2001, ahead of being raised to Rs 6,500 and additional to Rs 15,000 from September 2014. This signifies that in spite of the ceiling you’ll want to give a contribution 12% of your exact fundamental wage against PF with an identical contribution via the employer.
But this may well be executed provided that the employer and the worker had got prior permission from EPFO.
In reaction to an RTI query on what number of staff or contributors exercised the joint possibility beneath the supply – Para 26(6) from March 16, 1996 – EPFO mentioned, “As per available office records there are ‘NO’ joint options/ undertaking received in writing under Para 26(6) of the EPF Scheme, 1952 during the period from March 16, 1996 to December 31, 2022.”
EPFO additionally mentioned it has no knowledge on document of the whole choice of serving staff, or retirees and pensioners, until March 31, 2022, who exercised the joint possibility beneath this clause.
Following the hot Supreme Court ruling, which has opened a four-month window to go for the upper pension possibility, EPFO has now dug out this provision, which threatens to defeat the aim of the apex court docket’s order – permitting subscribers of the Employees’ Pension Scheme to decide in for pension according to the common exact fundamental wage for the final 5 years of provider. Implementing the decision signifies that anyone who has been a member of EPFO for 33 years can be expecting to get up to 50% of the five-year reasonable as pension, equipped the member is in a position to conform to the norms.
Experts advised TOI the retirement financial savings company has made up our minds to put in force the supply of “prior approval” for PF contribution according to your exact fundamental wage with retrospective impact when the SC order had now not in particular referred to it.
The provision is predicted to create hurdles for subscribers to decide in for upper pension, since such permissions from the company aren’t common even if staff and their employers have contributed for many years on their exact or upper salaries.
Most corporations with their very own provident fund trusts, as an example, give a contribution according to the real salaries in their staff, irrespective of limits. In truth, for years, EPFO has been pocketing administrative fees on those contributions, according to exact salaries, and not raised the problem of the supply beneath the EPF Scheme.
In truth, in lots of circumstances, EPFO has accredited those fees now not best from personal trusts, but in addition from staff of unexempted institutions, whose contribution is at once treated via the regional PF commissioners. Even in those circumstances, contributions had been made on exact salaries – with out prior permission from EPFO.
Experts and HR executives indicate that during January 2019, EPFO’s personal round to its regional PF commissioners had requested them to desist from insisting on compliance of the supply beneath Para 26(6) of EPF Scheme, 1952.
“…if an employer and employee have contributed under the EPF Scheme, 1952 on wages higher than the statutory wage limit, without joint option of employee and employer, and the EPF Account of the concerned employee has been updated by EPFO on the basis of such contribution received, then by action of employee, employer and EPFO, it can he inferred that joint option of employee and employer has been exercised and accepted by EPFO,” the January 22, 2019 EPFO round signed via Central Regional PF Commissioner Rajesh Bansal had mentioned.
This round, alternatively, was once summarily withdrawn not up to a month later with out ok rationalization.
The insistence of obligatory compliance beneath Para 26(6) within the EPFO’s newest orders has left candidates and professionals befuddled. An asset supervisor advised TOI the EPFO’s transfer will go away a big bite of staff, who’re prepared to decide in for upper pension, ineligible as neither they, nor their employers have the permissions which can be being sought now.
EPFO didn’t reply to repeated makes an attempt for rationalization.
Last week, throughout an interplay with CII representatives, regional PF commissioner Aparajita Jaggi didn’t give an explanation for why permission from EPFO was once being made a essential pre-condition to workout the upper pension possibility, resources advised TOI.
Earlier this week, EPFO prolonged until May 3 the cut-off date for contributors to enroll in upper pension beneath EPS. However, it’s but to explain the process of deposit and computation of pension.
Responding to an RTI Query on February 3, the retirement fund frame mentioned it had now not gained a unmarried utility, for the reason that inception of the scheme in March 1996, for permission beneath a clause now made obligatory to say the advantage of upper pension.
The provision calls for staff and employers to have collectively sought prior permission from EPFO to give a contribution upper quantities on their exact fundamental salaries as an alternative of the prescribed statutory prohibit for provident fund beneath the Employee Provident Fund (EPF) Scheme, 1952.
Over the years, the federal government has been elevating the pf contribution ceiling, which was once Rs 5,000 until June 2001, ahead of being raised to Rs 6,500 and additional to Rs 15,000 from September 2014. This signifies that in spite of the ceiling you’ll want to give a contribution 12% of your exact fundamental wage against PF with an identical contribution via the employer.
But this may well be executed provided that the employer and the worker had got prior permission from EPFO.
In reaction to an RTI query on what number of staff or contributors exercised the joint possibility beneath the supply – Para 26(6) from March 16, 1996 – EPFO mentioned, “As per available office records there are ‘NO’ joint options/ undertaking received in writing under Para 26(6) of the EPF Scheme, 1952 during the period from March 16, 1996 to December 31, 2022.”
EPFO additionally mentioned it has no knowledge on document of the whole choice of serving staff, or retirees and pensioners, until March 31, 2022, who exercised the joint possibility beneath this clause.
Following the hot Supreme Court ruling, which has opened a four-month window to go for the upper pension possibility, EPFO has now dug out this provision, which threatens to defeat the aim of the apex court docket’s order – permitting subscribers of the Employees’ Pension Scheme to decide in for pension according to the common exact fundamental wage for the final 5 years of provider. Implementing the decision signifies that anyone who has been a member of EPFO for 33 years can be expecting to get up to 50% of the five-year reasonable as pension, equipped the member is in a position to conform to the norms.
Experts advised TOI the retirement financial savings company has made up our minds to put in force the supply of “prior approval” for PF contribution according to your exact fundamental wage with retrospective impact when the SC order had now not in particular referred to it.
The provision is predicted to create hurdles for subscribers to decide in for upper pension, since such permissions from the company aren’t common even if staff and their employers have contributed for many years on their exact or upper salaries.
Most corporations with their very own provident fund trusts, as an example, give a contribution according to the real salaries in their staff, irrespective of limits. In truth, for years, EPFO has been pocketing administrative fees on those contributions, according to exact salaries, and not raised the problem of the supply beneath the EPF Scheme.
In truth, in lots of circumstances, EPFO has accredited those fees now not best from personal trusts, but in addition from staff of unexempted institutions, whose contribution is at once treated via the regional PF commissioners. Even in those circumstances, contributions had been made on exact salaries – with out prior permission from EPFO.
Experts and HR executives indicate that during January 2019, EPFO’s personal round to its regional PF commissioners had requested them to desist from insisting on compliance of the supply beneath Para 26(6) of EPF Scheme, 1952.
“…if an employer and employee have contributed under the EPF Scheme, 1952 on wages higher than the statutory wage limit, without joint option of employee and employer, and the EPF Account of the concerned employee has been updated by EPFO on the basis of such contribution received, then by action of employee, employer and EPFO, it can he inferred that joint option of employee and employer has been exercised and accepted by EPFO,” the January 22, 2019 EPFO round signed via Central Regional PF Commissioner Rajesh Bansal had mentioned.
This round, alternatively, was once summarily withdrawn not up to a month later with out ok rationalization.
The insistence of obligatory compliance beneath Para 26(6) within the EPFO’s newest orders has left candidates and professionals befuddled. An asset supervisor advised TOI the EPFO’s transfer will go away a big bite of staff, who’re prepared to decide in for upper pension, ineligible as neither they, nor their employers have the permissions which can be being sought now.
EPFO didn’t reply to repeated makes an attempt for rationalization.
Last week, throughout an interplay with CII representatives, regional PF commissioner Aparajita Jaggi didn’t give an explanation for why permission from EPFO was once being made a essential pre-condition to workout the upper pension possibility, resources advised TOI.
Earlier this week, EPFO prolonged until May 3 the cut-off date for contributors to enroll in upper pension beneath EPS. However, it’s but to explain the process of deposit and computation of pension.