The Supreme Court on November 4, upheld the amended Employees’ Pension Scheme (EPS). This limits the basic salary of an employee at Rs. 15,000 every month for the pension component derived from it to be calculated.
According to media reports, a Bench comprising Chief Justice of India Uday Umesh Lalit, Justice Aniruddha Bose, and Justice Sudhanshu Dhulia has allowed the appeals of the Employees’ Provident Fund Organization and the Union government challenging the judgments of the High Courts of Kerala, Rajasthan, and Delhi, which had quashed the EPS Amendment of 2014.
Sowmya Kumar, partner at IndusLaw said, “The 2014 amendments to the EPS will apply to establishments exempt and not exempt.”
However, the apex court invalidated the additional contribution of 1.16 per cent by employees. But this part of the order has been suspended for six months for the authorities to generate funds or to make relevant amendments to the scheme.
Moreover, the court has given four months to employees who could not enroll in the scheme and are entitled to do so.
It is to be noted that there were 58.55 million subscribers to the Employees’ Provident Fund Organization (EPFO) till 2021.
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