Aastha Thakur
Published on: 22 December 2022 at 20:50 IST
The Centre today gave statement that it is reviewing guidelines of the apex court in the judgement which upheld the Employees’ Pension (Amendment) Scheme, 2014 and allowed employees to opt for enhanced pension coverage alongside their employers in four months’ time.
The Minister of State for Labour & Employment Rameswar Teli gave answer in affirmative in his written statement to Rajya Sabha.
In its another written reply, the minister said that the court judgement will implicate legally and financially.
The 2014 amendment has raised the notional cap from 6,500 to 15,000, which also included modifications to paragraph 11(3) and the addition of a new paragraph 11(4). Only employees who were current EPS members as of September 1, 2014, were permitted to continue making contributions to the pension fund in line with their real wages, according to paragraph 11(4).
Rameswar Teli was replying to a question on whether the government is aware about the Supreme Court verdict of November 4 on EPF pension scheme and by when it will implement the verdict and instruct the EPFO (Employees Provident Fund Organisation) to take actions for giving higher pension. The scheme has provided for an extension of four months’ time for eligible employees to opt for enhanced pension.
As per the Supreme Court’s ruling, employees who were EPS-95 members as of September 1, 2014, can contribute up to 8.33 percent of their actual income toward pensions, as opposed to 8.33 percent of their pensionable salaries, which are limited to 15,000 rupees per month.
Additionally, it had repealed the 2014 revisions’ provision that employers contribute 1.16 percent of salaries that are higher than 15,000 rupees per month.
This will facilitate for subscribers to make higher contributions to the plan and receive higher rewards as a result.
There are more than six crore subscribers of the retirement fund body. A large number of contributing members of the pension scheme would benefit from opting for contribution on wages higher than threshold of ₹ 15,000 per month.