I joined my first company in October 2013, which is a PF trust-managed organization. The company was paying me a basic salary of Rs. 11,430 and contributing regularly to my EPF. I joined another company in 2016.
I enrolled for the higher pension option a few months ago through the EPFO member portal. When the application reached my first company, they rejected my application, stating that my PF wages were below Rs. 15,000 (effective from 01 September 2014). They also attached a circular to their rejection email, which I have included here.
Relevance to Rs. 15,000
I did some research and found the following relevance to Rs. 15,000:
- Contributions are payable on a maximum wage ceiling of Rs. 15,000/-.
- The employee can pay at a higher rate, and in such a case, the employer is not obligated to pay at such a higher rate.
- To pay contributions on higher wages, a joint request from the employee and the employer is required [Para 26(6) of the EPF Scheme]. In such a case, the employer has to pay administrative charges on the higher wages (wages above Rs. 15,000/-).
- For an International Worker, the wage ceiling of Rs. 15,000/- is not applicable.
I did not find any rule that could be the basis of rejection as stated by the company. If their claim of rejection is correct, please point me to the relevant government circular/mandate/rule. If their claim of rejection is not correct, what should be my next step?
From India, Hyderabad
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I enrolled for the higher pension option a few months ago through the EPFO member portal. When the application reached my first company, they rejected my application, stating that my PF wages were below Rs. 15,000 (effective from 01 September 2014). They also attached a circular to their rejection email, which I have included here.
Relevance to Rs. 15,000
I did some research and found the following relevance to Rs. 15,000:
- Contributions are payable on a maximum wage ceiling of Rs. 15,000/-.
- The employee can pay at a higher rate, and in such a case, the employer is not obligated to pay at such a higher rate.
- To pay contributions on higher wages, a joint request from the employee and the employer is required [Para 26(6) of the EPF Scheme]. In such a case, the employer has to pay administrative charges on the higher wages (wages above Rs. 15,000/-).
- For an International Worker, the wage ceiling of Rs. 15,000/- is not applicable.
I did not find any rule that could be the basis of rejection as stated by the company. If their claim of rejection is correct, please point me to the relevant government circular/mandate/rule. If their claim of rejection is not correct, what should be my next step?
From India, Hyderabad
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Eligibility for Higher Pension
In order to qualify for a higher pension, the basic requirement is to contribute to the Provident Fund (PF) on a salary above Rs. 15,000. If your employer has not contributed to the PF on a salary above Rs. 15,000, then you will not be eligible for a higher pension.
From India, Kannur
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4526In order to qualify for a higher pension, the basic requirement is to contribute to the Provident Fund (PF) on a salary above Rs. 15,000. If your employer has not contributed to the PF on a salary above Rs. 15,000, then you will not be eligible for a higher pension.
From India, Kannur
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf