EPFO Extends Deadline For Employees To Opt For Higher Pension Till May 2024

The Employees¡¯ Provident Fund Organisation (EPFO) has given a five-month extension till May 31 for employers to upload wage details online for those opting for higher pension.

EPFO Deadline Extended To May 2024

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The EPFO had kept the deadline to apply for higher pensions till July 11. Following this, it gave further three months to employers till September 30 and then another extension till December 31. The deadline is now extended till 31 May 2024.

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Lakhs Of Employees Applying For Higher Pension

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At least 17.49 lakh applications for validation of option or joint option have been received from members till July 11, 2023, a Labour Ministry statement said. More than 3.6 lakh applications for validation of option or joint option are still pending with the employers for processing, it said.

¡°In view of representations received from Employers & Employers¡¯ Associations wherein requests were made to extend the time period for uploading wage details of applicant pensioners / members, the employers were also given a further period of three months to submit wage details etc. online latest by 30.09.2023. This time was further extended till 31.12.2023 because many representations were received from Employers & Employers¡¯ Associations wherein requests were made to extend further time period for uploading wage details of applicant pensioners / members,¡± it said, as per various media reports.

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Higher Pension, But Lower Retirement Corpus?

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While the name in itself, i.e. higher pension, may sound lucrative to EPF subscribers, it's still important to assess the pros and cons before jumping onto application submission, including the possibility of a lower retirement corpus.

Subscribers to the Employees¡¯ Pension Scheme (EPS) who are opting for higher pension will have to also forgo the interest on the additional contribution of 1.16% of salary, which would further raise the amount taken away from the accumulated retirement corpus. This additional contribution has otherwise been effective since September 1, 2014.

While subscribers would get a higher pension on retirement, they would have substantially lower funds available in their provident fund account as well as before retirement if they need money to buy a house or to meet medical needs or in case of job loss, experts said, urging subscribers to carefully evaluate options.

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The government had issued a notification mandating a 9.49% contribution of salary to the Employees¡¯ Pension Scheme (EPS)¡ªan increase of 1.16 percentage points from the current 8.33%¡ªfor employees opting for higher pensions. Since this is effective September 1, 2014, the amount and interest will be clawed back from the accumulated provident fund corpus.

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