The Supreme Court has upheld the Employees’ Pension (Amendment) Scheme, 2014. Now, existing members of the Employees’ Provident Fund Organisation (EPFO), who had not opted for enhanced pension coverage prior to 2014, have another opportunity to jointly do so with their employers within the next four months.
As per the Employees’ Pension (Amendment) Scheme, 2014, the existing EPS members (as on September 1, 2014) along with their employers can contribute up to 8.33 percent of their ‘actual’ salaries — as against 8.33 percent of the pensionable salary capped at Rs 15,000 a month — towards pension.
With this, the SC has also canceled the requirement in the 2014 amendments that required employees to contribute 1.16 percent of the salary exceeding Rs 15,000 per month.
Note that the basic salary for the purposes of calculating the pension still remains at Rs 15,000 per month, which was first notified by the EPFO in 2014. This means that even if basic salary is higher than Rs 15,000 the employer’s contribution to the pension will continue to be calculated on a basic salary of Rs 15,000.
However, the new SC ruling has offred a chance to employees who were members of the EPS as on September 1, 2014 and had been making a higher contribution to the EPS – i.e., contribution on their actual salary if it was higher than Rs 15,000 per month. These employees are now required to give a joint declaration, along with their employer, to the EPFO in order to continue making contributions on the higher amount. This declaration must be given within four months from the date of the judgment, which is November 4, 2022. That means the last date to submit the declaration is March 4, 2023. For employees making this declaration, the pension will be calculated on their higher salary (and not at the capped Rs 15,000 per month).
The apex court held that the power to require members to make these additional contributions was not available under Section 6A of the EPF Act (under which the EPS was framed). However, it has kept this portion in abeyance for 6 months, so that the EPFO can understand how to obtain additional contributions to the pension fund in such a way that the fund is not depleted.
Ms Kalinga
Iam Returment 2018 August ma mara basic salary 20000 /tha mara ko benefits milaga.
I retired from state govt undertaking on 31.01.2014 and receiving pan 95 pension with salary cap of rs 6000 PM only.Now what action to taken by me to get pension in new supreme court recent order.
We had EPF trust,hence did not get eligibility then. Whether such employees are eligible now or not.
Those who retired before Sept 2014 are not eligible as per Supremecourt Order. Even Who joined EPS after Sept 2014 they are also not eligible. Those are before Sept 2014 and not retired before they are eligible, if they are emplyoee of TRUST Organisation,,thats again Optional, and if Opted for higher Pension, have to pay more as per guideline from Sept 2014 ..
yes, if you are part of EPS before Sept 2014 but not retired before Sept 2014
if you are part of TRUST Organisation, you will be eligible for higher pension the Period from Sept 2014 to Retiremenr date after paying extra amount from Sept 2014, it will not be so much impacted to ur pension as your wages just increased 5000.00 for period of 5 years..
Can widow apply for higher wages pension
Please go to the official website of EPFO for complete details. Thank you.
I am in superannuation epfo. My age 65 yard. Shall I get RS,1000 pension.