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| Supreme Court of India |
Allowing appeals by the Employees' Provident Fund Organization and the Central Government challenging the judgments of the Kerala, Rajasthan and Delhi High Courts that struck down the Employees' Pension (Amendment) Scheme, 2014, the court read out certain provisions of the scheme. .
In a relief to several employees, the Court said that those employees who have not exercised the option of joining the Employees' Pension Scheme, should be given a further opportunity of 4 months to do so.
The Court observed that the employees who were entitled to join the pension scheme but could not do so as they did not exercise the option within the cut-off date, should be given an additional opportunity as there is no clarity on the cut-off. The shortfall was- off date in view of the High Court judgments nullifying the provisions of the Employees' Pension (Amendment) Scheme, 2014. Therefore, the Court exercised its powers under Article 142 of the Constitution to extend the cut-off date.
The Court further struck down the condition in the 2014 plan that employees are required to contribute further at the rate of 1.16 per cent on wages exceeding Rs 15,000/-. The court had put this condition to be ultra vires of the EPF Act 1952 to make additional contribution on salary in excess of the limit. However, this part of the decision has been kept suspended for 6 months to enable the authorities to generate funds.
Supreme Court upholds Employees' Pension (Amendment) Scheme 2014; Extends the cut-off date for the option; holds the condition for additional contribution as invalid
In a significant judgment, the Supreme Court held the provisions of the Employees' Pension (Amendment) Scheme 2014 to be legal and valid. However, as far as the existing members of the fund are concerned, the Court has read out some of the provisions of the scheme.
The court further said that it was R.C. Gupta v. Regional Provident Fund Commissioner held that the dates specified in the pre-revised scheme cannot be considered as cut-off dates for joining the scheme.
A bench of Chief Justice of India Uday Umesh Lalit, Justice Aniruddha Bose and Justice Sudhanshu Dhulia had reserved the verdict.
