tf,~T.ml ~ f.mi ~ ( ~ ~ mrTR ~ \ffirf 'ITT<tiR I EMPLOYEES' PROVIDENT FUND ORGANISATION (Ministry of Labour & Empl(1fment, Govt. of India) ~ ~ I Head Office ~m~. 14-~~u:m.~~-llCi(JM, Bhavishya Nidhi Bhawan, 14, Bh1ka111 Cama Place, New Delhi - 110 066. o: Pe'1s on-I/1 2/ 33/EPS Amendment/96/ Vol.II / (\ Dated: ~3-03-2017 ,o, ~\~ .. All Regional P.F. Commissioner, <J Regional Office/Sub- Regional Office. Subject - Allowing members of the Employees' Pension Scheme, 1995 the benefit of the actua l salary in the Pension Fund exceeding wage limit of either Rs. 5000 / - or Rs. 6500 per month from the effective date respectively as per the Hon'ble Supreme Court's order in SLP No.33032-33033 of 2015 - Regarding. The matter of determ·nat;on of pensionable salary exceeding statutory wages ceiling ano exerose of option under deleted proviso to Para 11(3) of the EPS, 95 was exam neo m t'le ;1ght of the Hon'ble Supreme Court's Order in SLP No.33032-33033 of 2015. 2) The Hon'ble Apex court in SLP No.33032-33033 of 2015 observed that the refere1ce to the date of commencement of the Scheme or the date on which the salary exceeds t~e ceiling limit are dates from which the option exercised are to be reckoned with for ca cu at1on o: pensionable salary. The said dates are not cut-off dates to determine the eligib1I t'y o: ·-e employer-employee to indicate their option under t he proviso to Clause 11(3) of the Pe 5! Scheme. It has further been observed that a beneficial Scheme, ought not to be allov-.ec :o :- defeated by reference to a cut-off date, particularly, in a situation where (as in tre :)-ese-: case) the employer had deposited 12% of the actual salary and not 12% of the ce1 ng z Rs. 5000/- or Rs. 6500/- per month, as the case may be. In a situation where the deposit of the employer's share at 12% has oee- - ·-e actual salary and not the ceiling amount, the Provident Fund Commissioner cou d see· :: -e:: ... -" of all such amounts that the concerned employees may have taken or withd-aw, :_o""" their Provident fund Account before granting them the benefits of the prov so to Cla-SE : :(3 of the Pension Scheme. Once such a return is made in whichever cases s_:- :=:--.. 1s due, consequential benefits in terms of this order will be granted to tre sa·e; e--: - ees. Thus a member contributing to the Provident Fu--c o- · --2 ~c;:s exceeo ng the statutory ceiling or who had contributed to the Provident Fu G o- --e •.ages exceed,ng the Statutory ceiling cannot be debarred from exerc1s '19 ~.,e c:J: o- :c co-~~ :J-~e C"' S-C" ii gher wages to the pension fund. (Copy of the order of the Hon'ble Supre me Cou rt encl osed) . to the Pension Fund with up to date interest as declared under EPF Scheme. 1995 who had contributed on higher wages exceeding the statutory wage ceiling of Rs.to the Pension Fund with up to date interest as declared under EPF Scheme. 1995 who had contributed on higher wages exceeding the statutory wage ceiling of Rs.) Yours faithfully. Central PF Commissioner. 1952 from time to time to get the benefit of pension on higher salary on receipt of joint option of the Employer and Employee. 6500/.33032- 33033 of 2015 as approved by the Government and as per the provisions of the EPF & MP Act.in the Provident Fund to divert 8.in the Provident Fund to divert 8.03. Thakur) Addi. S. (This issues with the approval of CPFC. 6500/.33% of the salary exceeding Rs 6500/. 1952 from time to time to get the benefit of pension on higher salary on receipt of joint option of the Employer and Employee. (copy enclosed for ready reference} 5) The officers in charge of all field offices are directed to take necessary action accordingly in accordance with the order of the Hon'ble Supreme Court in SLP No.K.33% of the salary exceeding Rs.2017 has conveyed its approval to allow members of the Employees' Pension Scheme. 4) The MOL&E vide letter dated 16.3) Accordingly a proposal was sent to MOL&E to allow members of the Employees' Pension Scheme. ~ (Dr.6500/. . HQ(Pension) Copy to: ACC HQ(IS) for information with request for making necessary changes in the Software. 1952 and Schemes framed there under. n t.ir•••L.' c slare ~ndcL th~ r ..:S-:::'JNER EMPLOYEES PROVIDEN'f . ~· i :' · r.. I:-RvVH. the..r.i thut +-he app.. J"in+-cd r_ .s 1. _ hdl lt.. t 1 vf depc.s out e. r <iC'lt.·r e Judge t:y wh1 C"l th!'."...::'C.t_•f1.-Hnq C' 11t c.. to ......:nq~ .md •1.earnec SinJle • .1 • °. · ~ .1:~EA_~ NO(Sj__ lUQl-~::10014 0~' L0j.__..... £ .. 1 IN THE SUPR~ME COURT OF IN:JIA crv:L APPELLATE JURISD:CTION <'IV:'"I 1\....n r.e Pension :E 1.lT!~~..ng :. of the cc1l1.n..~. ._..nspt•ct1v. t of 1 .:::.r1 J.33032 33033 of 20l~i} 1..ArroN & ORS ETC.LANr ~S) VERSUS •IGfCNli.f t .f SLP(C) Nos.:1lant-empl:iyees t_ lE:d the ler.lkGANr·.EN1 FUND ~CMMI!.. r •.L.' :. .:-. ... r lV < 1 _: \...1m1..u. AFPE:.J• ~.t t.3 l salary i. ETC . t .uPTA & -->R·' E'. RE~ PONDEN r (S) 0 R D E R rc..t The aforesaid 1....~ appeals i..j.Hi-.f tnc total of 12 wt..11e·tu. . Sectior.L w e f (_. .1. whic. the .~ ahlec1 t I ~l. ! ::.1 .:.~.t Fund Account of ..: 9 5 2 Act .:iing to!'...r._.ils w1.1..1ployeL s share The Act.' fr .. pc'n .1..vn under.on fund w.L of d '.10r.:t pens1or t....ubJ..e A·:. fc1cts lie wi.:." t-he En..1q the e1.ploy~es' Pension to bl. ~o: A couple n...h1 emp .:i.> r •t i r ~.! frctrred •.'t wLi. ::.g dec1rness al:.1:i. contain any S.~ WJ.Ppo~1te0...99c t• V .1b-sect1on 6A with which we u. .r ::.d 2cnsL.unum f Pr1. tr• . L ..-'. am0nd'Tl£:!nt w. •1-.:. t ..e 11'• w f t .~ ·..::. .•r s 1.n Pnplcyt~e lwi.Le ..ted Lv R::.bu• ..... <:: to be ~r. 1~ 11 19<'.1..r. The c0rpus of the pens..ch d0.·.f :J .· 3 .u•.. 1 C c.'..ooa.1tuLed by deposi.6 . thl....>ntr. as t ht.te.owanre etc is required to be G.e..• year did not...2 of the basic wages ..r t.·o •• ublc ..1r1E:~ tor pdymt•n t .8 ".... t t.lary wa'.::.c s.. vt ":hP <..nserted by ar. 1. >r.. I .11y ..f~ r: r')v1.n w.•mployt..he the max.. was .c.1.thin a short compass ~'" . (4 ') b . i0t0rn..nc~udir.-.f..r a.t. Lyet.t:le.! Provider. L .::. t h5 1.1e ( Jncer •• ed.s. :... .:..ot withi..6 500/· {w.. lhe grC'U"1'1 t. beer...or.. or> actual L1L1 CJ/. or 6 ~ ..or..not bP .....J t idtP of ~urnmencerrent c.....: 1.:r. as mcty b~. . in by lhc • 1:•r. h cor.:ar. e sowet 1mp in t.. t>dr t .0n to the employer and <lrt "'"ployee tor contr.T<.lary .1f 1996 was r.< r•"{lllr(d t') le rt-m1ttcd to th~1 Pension Fund.::e1linq amount of r G i.CI.t. .::..hd ~ the prov1 so ~' l l. E •.-' '1:.33 ot su .r knowledge thc•refore.ng R~ 5 C":.0/ 01.he yecn 20u') • 1. dS the CdSe '.-·or. irrc-. . t r1t if-pl•l tant e.awe c.t.. t.e .:heme or frorr ~r<' JatP ... . 'r..>r f . e x ceed1..t • 1". .1t c.dc. tr i.buti.h~ r. r rt> t 1 rem1=n t.buti.e::.:. l 'Ihe dppellunt· empluye~s c.>Ilth 8. p u a +-hat +:he prov 1. so ..Pr m:n:Lh.F.::. e i 08.t: t:l. cu..u t 1 or1 under the A~• r.f S-.t.>n the eve cf •.r1.oyer s r1r.. . ary exceeded t:t..:>r1 tr.'ec WctS subsequent +.._..2001) per . r.0k . ht l'' r I At t bn _·r-~..l sa.n tt.ugh t.10.u' f. L l.q an opt1.on ox. ~ . on tu'!.l! ::.t. As t~e 4./ pC> r m. . r. they may be g~ven the benef1.t 1 1 the emp!.a . Rs. . .i .t":r.ad Schem'"' clS tne relevar... t.. f.•n· l•Jn ScLe1. drnt. .t 1t f id+- t We> h •vc heurd tl.-i it.!ble ~alc1ry.t-employe(.ppt..:. 1 !t. 1' .E:>.et1 t10r....-Jr 1 t. tc...t ~ Lr upee5 ""1.. uppcl luI.. .r ::L.W.~1P . ~ :.kJ.EJ :E.. s 1. ... XXX XXX . :1x.~ usc1nd cH.unsels fen.d t 1. .x +-}. the v.r ..e.2 Act.. 1 v::.. r Art .t trH Pens . )wir...r. ~ ~..n•ri tJ-. r.ead ar..s~.~ 1l<1ry !'la. ... .r:l 1..:.t that.1r 1 1m pC'nsior. .: l. r d"" t-• 11 1-< • f. .ni.on Bench r ) 1'l 8 l ( 3) of the Pen 51.r.on ~cr..1t: that thP <lP"i.<> :.c1ve 1.f th~ It.t:> .. U. '>" (j ' per 1c r ~ •.:.c c:.:le 226 uf Lhc ~vr...-..ur of the i. r. ve r ... .rder£ of .....1c....l. ...t. unch.:u -'.c· c.. rt 0£ th•..e flll .S moved t CH' Court... tdv..J c .r:t•c:edent. 1.:-n would not serve 1 •• d p..c-l L1-_~ ...r... . ...ill l:e ~ l.. 1.r..r tr. ·ms 1£ [hterm1nation ot P{.r..v.ttd. Jc .. .r. 1..::d c:c.t I ! >Vl.E future ':'r.r. Schnrr.i a-: tl-. L lc1nt-employees .?v1dcn ..:. It .:e 11 (3) c. . t Pelt Pd ty +-t:.1 y 1n <.. oyPt t hl .ic' r f_•Cl '~ f ....... cl<l t ed u f...t ... .~ vtc.t thE> d f.c d L'Y tr t' Fl q ..'l .:at'..-. r _•r.l<.·r . tht..Prlt...1 t l .. t L . ' 4?.-n.x ti-1011.! t1. l.L :r: opL.) u~te of conm.ployt•rs t hPn ot ~s rem1.. sa::. of the• err.=:--=--_ __---:_ .he Srl...nt.b! L. L_..1 tna ~ive hund:ed/Rs 6.. r .l t t . r .P:tf'".. .. a..i.'..u1n the prov1 ~o to ~ 1 ( tl·.emP . l.int sha:rc. t ur f' d J i. Ly Ji U-. _ 4 ... p0ns.·~.hc rr "ur L.1. l '~VrUT ..ti ernp loyer -emp ..dkPn 1:-y t.:r 1. -_ : -~ ..in . ...'I d<.500/] per mnnth from the d 1tf" f -:. t.on A somewhc.1t ..emer.1. e '1 r n '1UC''. .>v.h_. . · orr. t t< d ..1onnb:.h1.so.' .E t . of r.. rt '"U t v ff.>f t. u.r>OO/-J wl1~ :h~vt:. c1 1 t t. WP iinc-! t h. t t ' ( ~ . nto +-t. emp::.. P:r:c>v LdE·. c~.alary <1hal:.d on salary exceeding [ rupees six thousnnd and f1ve hund~ed/Rs 6. wncr1.i =--=. 1..s Court .ghf>z: s i.t t( bE l 11 CW(.b 1.s lut~x. ng t. du tu? tc t.yer. :' .~ lC ~ l 1g ~t 1 :.w t. <1 ~ S.he pr. r "-' ~ourt. ---=. t'P~~tior. ( 7 4 'J t 2. .rmncnc.e Pens1..en~err.. ~ .:l'.1• F" r.l. be. . and employee.... Ne .<1ry ex~eeds frupee5 s...11 d::. r.. contr1oution pa 1. + CL -:ut <>t f dct t• ' f.. ~ ~ ' .J 8 J3 per cc.. .. l..h~~ SchE:>me or from ...E:•c+-t> 1 ly . la:r y J Rt. r('.u. h1.ic1t h :s ceer. (.e P0ns~or curd. 0n s i. ppl:..he frov1.1..s Scheme ~..ak1na d .cier.1rpe ll.ablishment tJ wh1.11 such emp:oy{1c as d member er allow him to ._) L ' ' . or R~ 6.r.ives undert. a +..:ontr.. th if he J.it~ dn-i sha .undr:ed :rupees J of his pay per mvr...utJGct t.. the present case) t> ..SCU/ per month.l.ur... ot any employee of c1 factory 01 .yt:·r q. (6) l. on tht 101..naE'r paragraph 26 ( 6) of the EmployN!S · Pr<'v1.1sa.1..i l t 1 .i.ibute rr..U >n i. COO/ ..:onJ~t 'Hl~ of the fund pr0v1ded tl1dt tlw E:-'rp 11.. enr.i.er may... ) A further drgument has been made on bch. ~ red to Join the funa XXX XXX XXX (b} Nc. t.ployees haa dlready exercised their of..2 of the a.1. -~~- oth0r ~t...i.-::r lh..5 alr0ddy a n.oyees of entitled and r eq•. ~ tr: a ti ve • ( .cd ::. :i t-.dent' Fund Comm. t. l be r..>1.t Funds Sch~rne.!:..twithstanding . .1 ..ssioner that the .• h l l l c1 Jmu11. t err.t Udl saL1ry anct r )t !..i..n wr i t.. > L t1.t1nq t.•'.- I.o ':. ' 1 I • .)f an Ass1. wr1.iv! where (as ir..1lf of.L'. cin officer not below the t:dnk ..<.or~ than [~ ix th.ed ti') thC' bPnef.: be> P.ned .rnytrnng contu.plvyer hud depos. Pdragraph ?t.nt request 1.ember of the fund and thert upon surh crrp:cyee sh...1.stant. 0f thE' ce1 ling l Lmi t of Rs. Prov ..s emi:. as the ~ase mdy be.t"E:· .loy<·r.nd five t.:...n this pen ctgraph.! in the Pmp:.. dent Fund C:0TT1IP1 s tor... d h.1. 1.cner: coul.~on under par3qruph 26 of trc.fl -.. .t.:e ct .' ccictucil >(ilu:ty ciI.. S.0n .s inev .-:i • )t torec-lo['e the exci:ci&e ct .sf-> of suc:h vpti0n.rJer paragraph 26 ( 6) 1S necessary prec.d sha t C"omply 4 Wl.:heme 1.Jve upurt ::.t..i..• • L w •t • ~ . 4m1 la I upt1..rec:losure ~arlv .1...1ng s~ch f::.1nd the employee opt fur deposit agd1..a1cuted '' 4 ·rt.s~ of: option under c:uuse • L ( i) Ex .inder paragraph 1: (3) If bo t h the PrlPJ. wou!... <'harge! payable ar.. t f.. hefort! the .. t.dent I:un 1 Comm~s~.:!r .. ll (3) d'l~.r:l.1-rqr i(•ved to fl. not thP t('LJ1nq amou11t. th all ~t<ltu•ory pr~visio~s in respect of s u ch f 11'p • ">yeE'!] .ption under p 1raqraph .v. furthe>:r:: optio.r of the Pens1or...16 of thv Provident Fund Scherr..:i •..le thu L P A. :i to est.1 t· L!1.cc.:r: Ut.. We d.: . Srhemp unless the .cov.1.£' ab.op t.e can be 1• .f opt.iv..JL~~or to the cxe:r:c 1.nerefo:::0.cii. tc1ble> Exerc1sc of the )f.nst t !"ll •·al<lry and not .n a &1tuatior. n<>t. whei:e thl has b~·E>n on trst:... r.se of c... 1rrant. a.1orn.... see how ~"xerc1...'( r . •..ytc2r.dPn .he employees from exe r cising a. t . . r.. ·. . . t ·. t. • rnPJ E .1. 1: Pr.'tnnt.PS such return 1s due.L befurt> g.tov. \.Lv-. the i rov1ut:>._-.ch amount~.ment of accounts which in turn WC. 1 .\.c11 c.1.>r w1.dPnt Corr. I . employ(•f•S At ~ (•.s rr..em: t ~.) under the pr:csent.missioner cou:.1.d ie 1..nt I-' .i.d do crnd w.! r.u L th\:.it> tL.r.t whclt the P.dent Fund Acccur.re::: r:<l .1. tcd !:>Offi~ Of th.uV1.s an ad1ust.r. All that.i t ' ~r.tovi"'o to Cl<1usc :1 (3) of .rr t.:in. · .\F 1-< 4 .t.1H 1.1i:der ui t:..E•tJ t of.. WP f<.i.i. order: .. • A ~ .'nc£> :. f AN:') r-.•1ch a rpturn 1.t:dnt1nq . t • .1or._. h1.:. ( t AAF::.0 .'l C... buricf ~ ..z: w. :t.. (RAN..1t Fund Coxruniss.:.1 a. . r..i.l. .t thp dl:>ove.·.~-. be gr:unted t . ~ . t:.n tn( ~use 1.1 r-'E't il~l.t.. ronsequential.)W t-LE•rc •ffe. l u. ~ l !' '' ' '. t!"t: 1r Prcv1.. wt.1. t-prrrs cf th~s c ru.E!quent ly .TAN COGOI.hdrdwn .er ts rE::!qu.1red to do .q... W(• ---'":':'~Jt ..oyet·G cr <lY hdve t ux:c. .ls . the p. ') gr .... t f' I - '\ .. 'r '.Jv - i. 'a' .ide::h c..i... 'PTA bo npf Pc-h..n+.n_... ' T u .. dY :tk . i.. r. 0. i '( 1 ..n~·l.. t' u:C: l M. ...·l. nJ tt.. :-.. l • r . . AN AN . r..:1~ JJJgment d~ct ~rder ~ated 221r11-:t.hirnla) ....... M i.>:::..:'" <. N .1C:E:> trr. ':J . l 1 .I: ( .4l...J >f f l r f<'r hC'.3h•::k::.!. I •' '.k< 1. Mr Arihi ty.r...1r-.:L a1... ... Ahr Ml.'TJ"-r C. t '.. 0::oT r ~--r:: r '"F rr~Ft L J\. fc."1cI l i: .(..I<'~l\!-lI'>ATT >N & RS E r .t f-1r:.ll1.a l A'lv ' .t uf ~iqugned f .:•_... f .NG~ 'Ai·-.1 r..y th.'! rc-F . ...:. !'t.r t . - ~ TT p R E M E C J U F< 1' ~ I: I N D I A RECOk::) OF PRvCEE'.C:r.JlL L'hn.. h. r (.r .1r ~r J t. r . 4:1/2:.d Ah E ..rl1.d Lr:A NJ 41212(...ed t....:.. r ...T Et<..lt:'. t. I...itq Ah "lr A 1.r rr -.CN h. ..1t ...e ·....r::.'..:...' l J {• i -.. t:--ic 'rs...nkat !.:r.·h .N. ~ Ir. n.:l't •. : ·r. 1• <.1<.l.p ... f<.r l.wt• I r t. k [._..__.c1wan Adv M• .tioncr {..) \ . ...v .'\1...'~.. P-1L d:E L-.....1-=i .tl •-'Y ~\rl1. 1. 1 t. Mr ~. .. J "lr l <.l t.... f. l f i.Iu::.) f the <. l.\ h "1t M1. Hlgh C'vJtl r +- 1'!...i.u 1... .:1 ...if.. t ~ ..1+-t..C. pp• ~r -./_. r ( iVt...J . \ ' ' )!: i. e .:'JRT NC.1 ...l [t:N ... C')MMISSI.i-\.
Report "EPF Circular on Pension for Full Salary 23.3.17"