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    EPFO Norms

    Uploaded by

    Aditya Das

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    EPFO Norms

    Uploaded by

    Aditya Das
    23 views2 pages

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    © © All Rights Reserved

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    Download as docx, pdf, or txt
    23 views2 pages

    EPFO Norms

    Uploaded by

    Aditya Das

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Dear TechMighties,

    As some of you would be aware, EPFO has released revised guidelines on 20th Feb’ 23,
    wherein you have the choice to opt for higher Employee Pension Scheme (EPS)
    contribution (subject to the defined eligibility criteria).

    There are various factors which you should consider before you opt in. For easy reference,
    key highlights are summarized below:

    1. What is changing?:

      Current state Revised G

    Employer & Associate PF


    12% of Basic 12% of Basic
    contribution

    Associate contribution 100% allocation to Provident Fund (PF) 100% allocation to Provi

    8.33% of Basic (capped at INR 15K per month


    8.33% of Basic (without
    i.e. INR 1,250) allocated to Employee Pension
    allocated to EPS, based
    Scheme (EPS)
    Employer Contribution
    Remaining amount (12% of Basic – INR 1,250) Remaining amount (12%
    allocated to PF Basic) to be allocated to

    Please note that monthly pension (under EPS) is fully taxable as per prevalent tax slabs,
    while the lumpsum PF corpus is non-taxable (subject to completion of at least 5 years of
    service)

    2. Eligibility criteria to opt for higher EPS contribution:


     You should be a member of India Employee Pension Scheme (EPS) on or before 1
    September 2014
     Your PF contributions should have been on wages greater than the applicable wage
    ceiling (INR 5,000, INR 6,500 or INR 15,000 per month as applicable)
    o This has been the practice at Tech M with Employer & Associate
    contributions @ 12% of Basic

    3. Communication campaign & Toolkit:


     We will be running an extensive communication campaign (in partnership with
    Deloitte)
    o LIVE Webinars with Q&A hosted by experts from Deloitte
    o Help desk to address queries
     Additionally, the following collateral will be made available to you soon
    o Document summarizing key highlights
    o FAQs
    o Simulator to help you with scenario planning  
    4. Process to be followed:
     The option for higher EPS should be exercised by way of a joint declaration signed
    by the Associate and the Organization
     As per the EPFO circular, EPFO will release URL shortly to facilitate this choice
     Associates will have to register and digitally log in their applications using this URL
    on the EPFO portal
     Associates opting in will get a unique receipt number subsequently by the EPFO
     All applications submitted on EPFO portal, will be visible to the Employer for digital
    verification to complete the process

    5. Timeline:
     As per Supreme court directive & EPFO guidelines, Associate consent to opt for
    higher EPS has to be submitted to EPFO by 3rd March 2023   

    Please feel free to reach out to your designated BHR teams for any queries.

    Note:
     An additional contribution of 1.16% from Associate PF will be allocated to EPS (for
    those opting in for higher EPS) on an interim basis for the next 6 months. EPFO is
    expected to come out with further guidance on this aspect
     Central Government / EPFO may bring in new guidelines which may differ than what
    is currently outlined in this communication
     The increased EPS contribution, will be applicable on a retrospective basis for the
    entire past contribution period (w.e.f. November 1995 or the date of Pension Fund
    membership, whichever is later)
     No response on EPFO portal will be considered as not opting in for additional EPS
    contribution
     Opting in choice, once completed on EPFO portal will be irrevocable. Please exercise
    your choice after careful due diligence

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