Pension Scheme: The Supreme Court has upheld the Employees’ Pension (Amendment) Scheme, 2014, after which eligible employees who did not adopt extended pension coverage before 2014 can also become part of it in the next six months. Along with this, the Supreme Court in the 2014 amendments quashed the condition in which it was mandatory for the employee to contribute 1.16 percent of the salary of more than 15,000 per month. Chief Justice U.U. Lalit and Justice Aniruddha Bose, Justice Sudhanshu Dhulia upheld the Employees’ Pension (Amendment) Scheme 2014.
Employees will be able to contribute more to the pension fund
After this decision, employees who were existing members of EPS till September 1, 2014, can contribute up to 8.33 per cent of their ‘actual’ salary towards pension. Earlier, they could contribute only 8.33 per cent of the pensionable salary and the maximum limit was fixed at Rs 15,000 per month. But now the employees will be able to contribute more in this scheme and will also be able to get more benefits.
What did the Supreme Court say in its decision
The Supreme Court has termed the Employees’ Pension (Amendment) Scheme of the year 2014 as “legal and valid”. The Supreme Court said that the employees who have not yet exercised the option of joining the Employees’ Pension Scheme, should be given 6 months more time and opportunity to do so. The Supreme Court has given this decision, which gives relief to many employees, on Friday.
In August 2014, by amending the pension scheme, the maximum limit of pensionable salary was raised to Rs 15,000 per month from Rs 6,500 per month earlier. This made it possible for the members and their employers to contribute 8.33 per cent of the actual salary. The employees’ organizations have demanded that the government organize an extraordinary meeting of the Central Board of Trustees of the Pension Fund EPFO so that the apex court’s order can be implemented quickly.
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The Supreme Court has abolished the monthly salary limit of Rs 15,000 to join the pension fund. Which in the amendment of the year 2014, the limit of maximum pensionable salary (inclusive of basic pay and dearness allowance) was fixed at Rs 15,000 per month and before the revision the maximum pensionable salary was Rs 6,500 per month.
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