Employees’ Provident Fund Organisation (“EPFO“) issued clarifications vide internal circular dated On January 18, 2025, regarding the processing of Pension on Higher Wages (“PoHW“) to address queries raised by field offices. These clarifications focus on key aspects of pension computation and eligibility, specifically for members under the Employees’ Pension Scheme (“EPS“). PoHW will continue to be calculated on a pro-rata basis.
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For exempted establishments, eligibility for PoHW will be determined based on the trust rules of the respective establishment. However, applications from members of trusts with amended rules after November 4, 2022, will not be considered for PoHW. Eligibility is confirmed only once dues, along with interest, are received into the pension fund. Notably, no damages will be imposed in cases of retrospective wage revisions that are not a result of willful employer default.
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