The Employees’ Provident Fund Organisation (EPFO) has introduced a streamlined process for subscribers wishing to contribute beyond the statutory limit. The subscribers seeking to make additional contributions are required to submit a joint request and obtain permission under the EPF Scheme, 1952, specifically under Paragraph 26(6).
The Central Board of Trustees (CBT) has authoriSed a standardised format to facilitate Joint Requests under Paragraph 26(6) during its 234th Meeting held on October 31, 2023. Going forward, all new cases will be digitally filed and processed using this standardized format, aiming to enhance efficiency and reduce paper usage.
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According to the EPFO circular dated January 30, 2024, individuals falling under specific criteria are eligible to use this format. Specifically, cases where an employer has paid administrative charges on an employee’s contribution beyond the statutory limit, and the employee has already made such contributions but has either left their position or passed away before October 31, 2023, are considered eligible. This provision aims to prevent difficulties for all parties involved.
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Existing members who are already contributing beyond the statutory limit, with their employers paying administrative charges on these contributions, are not immediately required to file Joint Requests using the newly authorized format. It’s important to note that this exemption applies exclusively to cases falling under Para 26(6) of the EPF Scheme, 1952.
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Understanding the Joint Request under Para 26(6) of the EPF Scheme, 1952, is crucial. This provision addresses contributions on wages exceeding the statutory limit. According to Para 26(6), both the employee and the employer must jointly submit an option, and EPFO’s acceptance of this joint request is a prerequisite.
Furthermore, in accordance with a Supreme Court order dated November 4, 2022, employees are entitled to a higher Employees’ Pension Scheme (EPS) pension under certain conditions. This includes individuals who retired before September 1, 2014, making higher contributions to their EPF account, and those who were members of EPS or EPF on September 1, 2014, and continued their membership thereafter.
