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EPFO Introduces Digital Process For Contributions Beyond Statutory Limit - Details

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). According to the EPFO circular dated January 30, 2024, “In all cases where the employer has paid administrative charges on an employee's contribution to pay more than the statutory limit and the employee has already paid more than the statutory limit but has left their position or passed away before October 31, 2023, it is deemed that the employee was permitted to contribute more than the statutory limit in order to prevent difficulties for all parties involved.”

EPFO latest rules on submission of digital joint requests to increase EPF contribution

Who are not required to to file their joint requests immediately All the existing members who are already contributing on Pay more than the statutory limit and their employers are also paying administrative charges on such contributions made on Pay more than the statutory limit will not be required to file their Joint Requests in the above format immediately. Note that the above is re-iterated only for the cases under Para 26 (6) of EPF Scheme, 1952. What is joint request under para 26(6) of the EPF scheme 1952 Under the EPF Scheme 1952, contribution on wages higher than the statutory wage limit is dealt under Para 26(6). As per this Para, for provident fund contribution on higher wages, joint option of employee and employer is to be submitted and the same is required to be accepted by EPFO. As per the Supreme Court's order dated November 4, 2022, an employee is eligible for higher EPS pension if: 1) He/she has retired prior to September 1, 2014 and was making higher contribution to their EPF account. However, their higher EPS pension request was rejected by the EPFO 2) He/she was a member of EPS or EPF on September 1, 2014 and continued to remain the same after.