Allowing members of the Employees’ Pension Scheme, 1995 the benefit of the actual salary in the Pension Fund exceeding wage limit of either Rs.5000/- or Rs. 6500 per month from the effective date respectively as per the Hon’ble Supreme Court’s order in SLP No.33032-33033 of 2015
The matter of determ·nat;on of pensionable salary exceeding statutory wages ceiling and exercise of option under deleted proviso to Para 11(3) of the EPS, 95 was examined in the 1ght of the Hon’ble Supreme Court’s Order in SLP No.33032-33033 of 2015.
The Hon’ble Apex court in SLP No.33032-33033 of 2015 observed that the reference to the date of commencement of the Scheme or the date on which the salary exceeds the ceiling limit are dates from which the option exercised are to be reckoned with for calculation of pensionable salary. The said dates are not cut-off dates to determine the eligibility of the employer-employee to indicate their option under the proviso to Clause 11(3) of the Pension Scheme. It has further been observed that a beneficial Scheme, ought not to be allowed to be defeated by reference to a cut-off date, particularly, in a situation where (as in the present case) the employer had deposited 12% of the actual salary and not 12% of the pf wage ceiling limit Rs. 5000/- or Rs. 6500/- per month, as the case may be.
The MOL&E vide letter dated 16.03.2017 has conveyed its approval to allow members of the Employees’ Pension Scheme, 1995 who had contributed on higher wages exceeding the statutory wage ceiling of Rs. 6500/- in the Provident Fund to divert 8.33% of the salary exceeding Rs.6500/- to the Pension Fund with up to date interest as declared under EPF Scheme, 1952 from time to time to get the benefit of pension on higher salary on receipt of joint option of the Employer and Employee.
Discuss Here: HR forum