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ARTICLE · 14 JUNE 2023

EPFO On Exercise Of Joint Option For Higher Contributions: Key Takeaways

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After a long period of uncertainty over a definitive stance taken by the Employees' Provident Fund Organisation (EPFO) on exercise of joint option for higher contributions...

IndiaEmployment and HR
Anshul Prakash
Anshul Prakash
Deeksha Malik
Deeksha Malik
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After a long period of uncertainty over a definitive stance taken by the Employees' Provident Fund Organisation (EPFO) on exercise of joint option for higher contributions under the Employees' Provident Funds Scheme, 1952 (EPF Scheme), the EPFO issued a circular dated 2 June 2023 (June Circular) detailing the applicable mechanism in this regard.

Background

While the EPF Scheme envisages mandatory coverage of employees earning monthly pay (comprising basic salary and ordinarily payable allowances) not exceeding INR 15,000, Paragraph 26(6) of the EPF Scheme provides that an officer not below the rank of an Assistant Provident Fund Commissioner may, upon the joint written request of an employee and a covered employer, enroll such employee as a member of the EPF Scheme or, if such employee is already a member, allow such employee to deposit employees' provident fund contributions on monthly pay exceeding INR 15,000.

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