Employee Pension Scheme: Private sector employees can get relief from Supreme Court soon
Employee Pension Scheme: Private sector employees can get relief from the Supreme Court soon. The Supreme Court’s decision may increase the pension (EPS) of lakhs of employees contributing to the Employees’ Provident Fund (EPF) by up to 300%. Basic pay for private sector employees has been increased to Rs 15000. Even if you have more than Rs 15000, PF on salary will be calculated at Rs 15000 only.
Supreme Court can abolish this salary limit. Right now the hearing on this matter is going on. If the Supreme Court removes the salary limit, the calculation of PF can also be done at the highest bracket. That is, if the basic salary is more than Rs 15000, the PF money will be deducted at the highest level. With the decision of the Supreme Court, the employees will get many times more pension.
This is the whole matter
The Employees’ Pension Revision Scheme was implemented by the Central Government through a notification on 1 September 2014. This was opposed by the private sector employees. On this EPFO filed an SLP in the Supreme Court. The Supreme Court decided to hold a hearing. While hearing EPFO’s SLP on 1st April 2019 said that the employees who are contributing on the basis of their actual salary, they are depositing with their company in the form of joint option. They are not able to take advantage of the benefits of the pension scheme without justification. There is no justification for fixing the pension salary of Rs 15 thousand, on which the hearing is going on. The matter is being heard continuously since August 17 and the matter is still pending.
Your pension will increase so much
According to the old formula, the employee will get a pension of about Rs 3000 from June 2, 2030, on completion of 14 years. If the Supreme Court decides in favor of the employees, then the pension of the employee will increase. Suppose the salary (Basic Salary + DA) of an employee is 20 thousand rupees. According to the pension formula, the pension will be Rs.4000 (20,000X14)/70 = Rs.4000. That is, there can be a direct jump of 300% in the pension.
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