This is the situation prevailing perhaps since long back and only the issued came to light due to:

1. Reverting to Pension within the Ceiling which was already revised as Higher Pension as per the Judgement of the Hon’ble Supreme Court on 4th October, 2016 in case of Sri R.C. Gupta & Others and from Unexempted Establishments who opted for Higher Pension. Here the Higher Pension was paid for some time, and suddently stopped asking the Employee for submission of proof of having submitted joint Option under Para No: 26(6) of Employees’ Provident Fund Scheme, 1952.

2. Attracted even the attention of both Print and Electronic media the issue of submission of Option under Para No: 26(6) after the Judgement of the Hon’ble Supreme Court on 4th November, 2022.



The present Circular reiterates the same rules.

The extra rule is those who are in service and already contributing above the Ceiling have to submit the option at the time of settlement of EPFS, ’52 Account.

Contributions are EPS,’95 are acceptable only upto the Employee attaining the age of 58 years, where there is scrutiny of Joint Option under Para No: 26(6) when his Pension is calculated on Higher Wages, which practice was newly started.

Previously in case of those who were sanctioned Higher Pension both from Exempted and Un Exempted Establishments, where the Employees submitted Option for Higher Pension as per the Gazette Notification of 16th March, 1996 and submitted Options upto 30th November, 2004, there was not such scrutiny. 

Pension on Higher Wages is calculated soon after attaining 58 years and continues to be paid even though the Employee continues to be in service either upto 60 years or 62 years as the case may be where the recovery towards Employees’ Provident Fund Scheme, 1952 continues upto either 60 years or 62 years as the case may be.

But the recent Circular on Para No: 26(6) says that Option can be submitted at the time of settlement of P.F. Account i.e., after attaining 60 years or 62 years.

Whereas the scrutiny of the Option under Para No: 26(6) is being done when the Employee attains 58 years and who opted for Higher Pension, when the sanction of Pension on Higher Wages is takenup. 

Hence an Employee who is contributing above the Ceiling under EPFS,’52 and not submitted Joint Options under Para No: 26(6) has to submit Option before attaining the age of 58 years, if he is already an Optee of Higher Pension and not to wait till the time of the settlement of his Provident Fund Account which is being done after attaining 60 or 62 years.

In case of Exempted Establishments, the Management only pays Inspection Charges but not Administrative Charges, hence the Circular may not be applicable to them.

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