Team  SoOLEGAL

After Supreme Court Decision Massive Increase in Private Sector Pensions

Team SoOLEGAL 22 Nov 2017 5:52pm

After Supreme Court Decision Massive Increase in Private Sector Pensions

The Apex  Court order of  October 2016 that directed the Employees Provident Fund Organisation (EPFO) to revise the pension of 12 petitioners under the employee pension scheme (EPF).

The pension scheme, which is part of EPF, has over 5 crore members. Every employee in the organised sector contributes 12% of basic salary and dearness allowance to EPF. The employer makes a matching contribution. Of the employer's contribution, 8.33% goes to the EPS. When people withdraw their EPF after a job switch or during unemployment, the EPS is not given out. It's payable only after superannuation.

There is also a ceiling on EPS contributions. The current cap on salary (basic + DA) is Rs 15,000 per month so, the maximum one can contribute to the EPS is 8.33% of Rs 15,000, which is Rs 1,250 a month.

There is also a ceiling on EPS contributions. The current cap on salary (basic + DA) is Rs 15,000 per month so, the maximum one can contribute to the EPS is 8.33% of Rs 15,000, which is Rs 1,250 a month.

Between July 2001 and September 2014, the EPS salary cap was Rs 6,500 a month, which translated to a maximum contribution of Rs 541.4 a month. Prior to 2001, the ceiling was Rs 5,000, which yielded a maximum contribution of Rs 416.5. [Inputs TOI]

Tagged: Apex Court   Supreme Court   Private Sector   Pensions   EPFO  
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User Comments
G.S.Sodhi
Very usful. Pl give case refrence hope this is not R C Guptas case decided by Honble Supreme court (Himachal high Court).
G.S.Sodhi 23 Nov 2017 7:36am
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