Higher EPS: Applicants continue to face challenges, say experts

Today is the last day to apply for a higher pension from the Employees' Provident Fund Organisation (EPFO). Initially scheduled for March 3, the deadline was extended to May 3, then June 26, and finally to July 11. 

The deadline was extended multiple times as the EPFO faced challenges in providing timely information about the application form, causing difficulties for applicants. One major hurdle was the availability of joint application under 26(6) of the EPF Scheme. However, the EPFO, following the intervention of the Kerala High Court, allowed application submission without mandatory proof. In a circular dated June 14, the EPFO introduced alternative options, such as employer-submitted wage details, authenticated salary slips, joint request and undertaking from the employer, or a letter from the PF office indicating higher PF contribution before November 4, 2022.

While these changes have addressed some challenges, the scheme still poses a few difficulties for applicants. Here is what experts say:

Kanjani Sharma, Associate TAS Law 
“While EPFO has provided an extension for filing of application for Higher Pension Schemes till 11.07.2023, it has clearly specified that no further extension would be provided. That even though the extensions have been provided sympathetically on various occasions by the EPFO, the applicants are facing huge technical difficulties in the unified EPFO portal among other discrepancies. The major concern is the sheer lack of clarity on the amount the pensioners/applicants will receive after the acceptance of their applications. There are many users who are facing major problems in calculation of the payment amount and on how the transfer of wages will be made from EPF account to the EPS account. The employers in the bigger picture of scheme have been burdened with the humongous task of providing physical authentication for each employee within three months i.e., till September 2023.” 

Sandeep Bajaj, Managing Partner, PSL Advocates & Solicitors 
“The subscribers are facing certain types of challenges while applying for higher EPS which include technical issues and snags in the process of submission of the application through the unified EPFO portal. Moreover, many people have unawareness about the kind of documents which are required for the application, leading to further confusion. It is because of the above challenges that the request for an extension of the deadline was accepted once till 26th June 2023 which was subsequently extended then till 11th July 2023.” 

Aditya Chopra, Managing Partner, Victoriam Legalis - Advocates & Solicitors 
“Subscribers were facing challenges while applying for higher EPS in the past, particularly regarding proof of permission under para 26(6) of the EPF scheme. However, the Kerala High Court ruled that the EPFO should not insist on this proof. As a result, the EPFO simplified the process and enabled the submission of joint option applications without mandating the proof. This should help alleviate some of the challenges faced by subscribers.” 

Ankit Rajgarhia, Principal Associate, Karanjawala & Company, Advocates
“The application process for a higher Employee Pension Scheme (EPS) has undergone a significant transformation by transitioning to an online platform. “Subscribers can now conveniently apply through the EPFO Unified Member portal, where they can access the option labelled 'Pension on Higher Salary.' This streamlined online process has effectively eliminated the previous challenges associated with applying for a higher EPS. By embracing digital technology, applicants can now enjoy a more user-friendly and accessible experience, making the process smoother and more convenient than ever before.”