EPFO's 15000 salary ceiling has been removed! Learn more about the Supreme Court's recent significant judgement addressing the pension programme, which cancelled the 15k salary cap.

 EPFO's 15000 salary ceiling has been removed! Learn more about the Supreme Court's recent significant judgement addressing the pension programme, which cancelled the 15k salary cap.

Today's EPFO Pension Scheme News Update The Employees Pension (Amendment) Scheme for the year 2014 was the subject of a significant ruling by the Supreme Court today. The Employees' Pension (Amendment) Scheme of 2014 was deemed "legal and valid" by the Supreme Court on Friday.


In Delhi. The Employees' Pension (Amendment) Scheme for the year 2014 was the subject of a significant ruling by the Supreme Court on Friday. The Employees' Pension (Amendment) Scheme of 2014 was deemed "legal and valid" by the Supreme Court.

Although the court provided relief to many workers, it also ruled that those who had not yet chosen to join the Employees' Pension Scheme should be granted an additional six months to do so.

Explain that the court has eliminated the Rs. 15,000 monthly wage threshold for pension fund membership. The highest pensionable wage (including basic pay and dearness allowance) was increased to Rs 15,000 per month in the 2014 amendment, from Rs 6,500 per month in the prior amendment.

You have six months to sign up for the pension plan.
Employees who haven't taken advantage of the chance to join the pension plan must do so within six months, according to Chief Justice U.U. Lalit, Justice Aniruddha Bose, and Justice Sudhanshu Dhulia.


The bench said that because there was a lack of clarity on the subject in the rulings issued by the High Courts of Kerala, Rajasthan, and Delhi, the qualified employees who were unable to enrol in the programme by the deadline should be given another chance.

Additionally, this condition was ruled invalid.
The 2014 scheme's requirement that employees contribute an additional 1.16 percent of salaries beyond Rs 15,000 was also repealed by the court. The bench stated that the requirement to make an additional payment on salaries that exceed the ceiling would be voluntary but that this portion of the ruling would be suspended for a period of six months to allow the authorities to raise money.

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The main topic of contention is to the contentious changes made to EPS-1995's Clause 11. Prior to the introduction of the amendment, EPS was available to all employees who joined the Employees' Provident Fund Scheme of 1952 on November 16, 1995. In the pre-revised version of EPS-1995, the maximum pension contributions wage ceiling was Rs. 6,500.

However, members whose pay exceeds this cap may elect to make a joint contribution with their employer equal to 8.33% of their real pay.

In 2014, the EPS was updated, adding a new paragraph 11(4) and changing paragraph 11(3) to increase the cap from Rs. 6,500 to Rs. 15,000. Only employees who were EPS members as of September 1, 2014, are permitted to continue making contributions to the Pension Fund based on their real wage, according to Article 11(4). He had six months to decide on the new pension programme.

Additionally, Section 11(4) introduced an additional responsibility for Members whose Salary Exceeded the Rs. 15,000 Limit. He was expected to contribute 1.16% of his pay.