On Friday, the apex court docket struck down the requirement within the 2014 amendments mandating worker contribution of 1.16% of the wage exceeding ₹15,000 monthly.

Now the prevailing EPS members (as on September 1, 2014) can contribute as much as 8.33 per cent of their ‘precise’ salaries — as in opposition to 8.33 per cent of the pensionable wage capped at ₹15,000 a month — in the direction of pension. This means they’ll contribute larger and likewise get enhanced advantages, together with larger annuity after retirement.

Following the order, commerce unions requested the federal government to name a unprecedented assembly of the central board of trustees of the retirement fund physique EPFO for fast implementation of the identical. 

General Secretary, Hind Mazdoor Sabha, Harbhajan Singh Sidhu informed PTI, “The apex court has given relief to subscribers of the Employees’ Provident Fund Organisation (EPFO) to opt for pension on higher earnings. Now we demand from the government to immediately call a special meeting of Central Board of Trustees (CBT) headed by the Union Labour Minister to discuss the order in detail and implement the relief given to members.”

Apart from this, SC additionally acknowledged EPFO can’t ask subscribers for a further 1.16 per cent of contribution of wage for opting pension on larger earnings with out amending the prevailing regulation.

The court docket has given the choice of pension on larger earnings to subscribers of exempted provident fund trusts additionally.

Another EPFO trustee and All India Vice-President of Bharatiya Mazdoor Sangh (BMS) Sunkari Mallesham additionally demanded a unprecedented assembly of the CBT. “There is a need to call an extraordinarily meeting of the CBT to discuss the order thoroughly and provide relief given to members,” Mallesham informed PTI.

The apex court docket acknowledged: “Time to exercise option under paragraph 11(4) of the scheme, under these circumstances, shall stand extended by a further period of four months. We are giving this direction in exercise of our jurisdiction under Article 142 of the Constitution of India.”

Paragraph 11 (4) of EPS-95 gives for members to go for pension on larger earnings. The window to go for contribution on larger incomes was open to subscribers for six months from September 1, 2014.

(With inputs from companies)