The central government in accordance with the directions of the Hon’ble Supreme Court in the matter of EPFO & ors. v. Sunil Kumar B, has in exercise of its powers under the Code on Social Security, 2020 enforced the provisions which say that the eligible members who exercised the joint option for contributing under the Employees’ Pension Scheme, 1995 shall now contribute 9.49% employer’s contribution, from the extant 8.33% and the increased contribution shall be applicable to basic wages, dearness allowance, retaining allowance that exceeds 15,000 rupees per month. It also provided that the notification shall be deemed to be in force from 01.09.2014.
In continuation of the notification of 03.05.2023 that increased the employer’s contribution in the joint option to 9.49%, this circular has been issued to enumerate the calculation of the dues, classification of the applications, and the information regarding the same.
The circular says that the application of each member or pensioner shall be processed as an individual file with an ID number and the records of the trust and that of the establishment must be consistent with each other. 8.33% of the employer’s share on higher pay will be calculated, w.e.f either 16.11.1995 or the date when pay exceeds the wage ceiling, whichever is later. 1.16% of employer share will be calculated towards increased contribution pay above Rs. 15,000- p.m. w.e.f 01.09.2014.
Three categories for the classification of application for validation or joint options will apply; a) dues have already been fully remitted to the EPS in due months; b) dues have not been remitted, but contribution on higher wages have been, and there is adequate balance in the PF account; c) dues have not been remitted, contribution on higher wages have been, but there is inadequate balance in the PF account. There is also an inclusion of a table for the same, along with a format for giving consent for the diversion of the dues by the pensioner/member.
The method of payment has also been enumerated, which includes payment by any online facility provided by EPFO or Cheque with the details of application ID, UAN/PPO number, name, mobile number, and the demand notice number and date. The circular also directs that the officer in charge of the concerned Regional Office will monitor the daily progress and report the same on a daily basis.