Employee Pension Scheme 2014: If you are employed and have not yet opted for enhanced pension coverage before 2014, you can do so jointly with your employers within the next 4 months.
This comes after the Supreme Court order regarding upholding the Employees’ Pension (Amendment) Scheme, 2014. Let us tell you that the Supreme Court has upheld the Employees’ Pension (Amendment) Scheme, 2014. After this, eligible employees who did not adopt Enhanced Pension Coverage before 2014 can also become part of it in the next 4 months.
After this decision, employees who were existing members of EPS till September 1, 2014, can contribute up to 8.33% of their ‘actual’ salary. Earlier, they could contribute only 8.33% of the pensionable salary and the maximum limit was fixed at Rs 15,000 per month. But now the employees will be able to contribute more in this scheme and will also get more benefits.
Along with this, the court set aside the condition in the 2014 amendments, which made it mandatory for the employee to contribute 1.16% of the salary of more than Rs 15,000 per month. Employees’ organizations have demanded that the government organize an extraordinary meeting of the Central Board of Trustees of the Pension Fund EPFO so that the apex court’s order can be implemented expeditiously.
In August 2014, by amending the pension scheme, the maximum limit of pensionable salary was raised to Rs 15,000 per month from Rs 6,500 per month earlier. This made it possible for the member and their employer to contribute 8.33% of the actual wages.
