As per the 3rd May 2023 Labour Ministry notification, it is clarified that employees who opted for higher pension and were approved by EPFO are required to bear the additional contribution charges @ 1.16% from 1st Sep 2014 onwards.
Currently, the government pays 1.16% of basic wages up to Rs. 15,000/- (PF Ceiling) as a subsidy for contributions towards Employees Pension Scheme (EPS). The employers contribute 12% of basic wages, out of which 8.33% up to Rs. 15,000/- goes into EPS, and the remaining 3.67% is credited into the Provident Fund Account.
All those EPFO members who are opting to contribute on their actual basic wage which is higher than the threshold of Rs.15,000/- pm for getting a higher pension, will now have to contribute an additional 1.16% towards EPS effective from 1st Sep 2014. This will mean a further depletion of the member’s PF Corpus. This is as per the direction of the Honourable Supreme Court Judgment issued on 4th Nov 2022.
The 3rd May 2023 notification and the summary of higher pension issued by the Labour Ministry can be referred to in the below link.