EPFO Rs 15,000 salary limit has been canceled. Supreme court's big decision on Employee Pension Scheme (EPS). The new date has been decided to join employee EPS. Supreme court has taken the final decision on the employees' pension scheme (Amendment).
Employees who have not joined yet for the pension scheme, they have got 6 months more to do so. The supreme court marked the Employees Pension Scheme (Amendment) for the year 2014 as legal and valid. This decision was taken on last Friday in New Delhi by the supreme court.
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| New Date To Join Employee Pension Scheme | EPFO Rs 15,000 salary limit canceled by the supreme court, know details |
The maximum pensionable salary limit was fixed to Rs 15,000 per month, which was Rs 6500 maximum limit earlier per month. The court said that the revised salary limit of Rs 15,000 has been canceled for the Employees Pension Scheme Fund (Amendment) for the year 2014. The supreme court said that those employees who have not joined the pension scheme fund due to any reason, they have to complete the joining process for Pension Scheme Fund within 6 months.
Know the history of the Employees Pension Scheme (EPS), the Joining process, and eligibility.
Earlier in 1995, the Employee Pension Scheme joining pay limit was Ra 6500 per month for all employees in India, But the before the amendment was introduced in India. Employees who were a member of the Employee Provident Fund Scheme 1952 on 16 November 1995, Those employees can avail the benefit of the Employee Pension Scheme (EPS).
The maximum pensionable salary limit in the pre-revised version of EPS-1995 was Rs 6,500 per month. However, employees whose salary exceeds this limit can choose to contribute 8.33% of their actual salary along with that of their employers.
Employee Pension Scheme (EPS) was amended in 2014, which included a change in paragraph 11(3) and a new paragraph 11(4), raising the cap from Rs 6,500 to Rs 15,000.
Paragraph 11(4) states that only those employees who were existing EPS members as on 1st September 2014 can continue to contribute to the Pension Fund as per their actual salary. He was given six months to choose the new pension system.
In addition, 11(4) created an additional liability for those members whose salary exceeded the limit of Rs 15,000. He was to contribute at the rate of 1.16% of the salary.
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New date to join employee pension scheme (EPS).
The group of justice at the court said that those employees who have not chosen the option of joining the employee pension scheme till now, they should have completed the joining process for EPS in the next 6 months. They mentioned that the extra timeline has been given to join the EPS as there was some clarity issue in the employee pension scheme issued and passed by the high court of Rajasthan, Kerala, and Delhi.
This condition was also declared invalid by the court for the amendment was made in the 2014 year. As per that old condition made in the 2014 amendment the employee needs to make an additional contribution of 1.16 percent of their wages for above Rs 15,000 per month salaried person. The bench said that this condition of extra contribution would be on a voluntary basis. Now the court has suspended this extra contribution condition also till the next 6 months.
The supreme court has declared this new timeline for 6 months now to join the Employee Pension Scheme (EPS) in India. All employees who were waiting for joining in EPS fund, they have completed the joining process in EPS within 6 months, after that employees will not able to join as new members of the EPS.
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