/ Relief to retiring public sector employees, SC rejects plea against Kerala HC order on EPFO pension

India TV : Apr 02, 2019, 05:11 PM

EPFO Private Sector Employees Pension Scheme, By rejecting the plea, Supreme Court today upheld HC order. In effect, all retiring employees will now get pension on their full salary instead of the Rs 15,000 cap. While 12 per cent of the basic salary and dearness allowance have to be contributed by all employees earning up to Rs 15,000 per month. The employer’s component is split into EPF & Employees’ Pension Scheme.

By rejecting the plea, the Supreme Court today upheld the HC order. In effect, all retiring employees will now get pension on their full salary instead of the Rs 15,000 cap.

The Employees’ Provident Fund is a retirement benefit scheme that was structured to provide financial security to employees of factories and other establishments.

While 12 per cent of the basic salary and dearness allowance have to be contributed by all employees earning up to Rs 15,000 per month (not mandatory for others), the employer component (12 per cent) has to be contributed mandatorily in case of all employees. The employer’s component is split into EPF (3.67 per cent) and the Employees’ Pension Scheme (8.33 per cent).