Industrial Relations And Labour Laws
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As per the Supreme court verdict EPFO should provide Pension on actual salary for employees and companies who would opt for it. A transfer of fund should be made on this account by EPFO. Can anyone enlighten that if it is applicable for Exempted Funds???
9th December 2017 From India, Kolkata
This ruling applies only to employees of the establishments who have paid the PF contributions on actual salary without restricting the PF qualifying salary to Rs 6500. For example, XYZ Ltd is an establishment which use to contribute the employer share of PF on the actual salary. Mr B's PF qualifying salary was Rs 10000 and the employer share of 12% was deposited like, Rs 541 (8.33% of Rs 6500) to Pension Fund and the balance Rs 659 (ie, 1200 minus 541) to PF along with employee's share of Rs 1200. That means, though the share of employer was Rs 1200, the employer was permitted only to contribute Rs 541 to Pension Fund. At the same time he had contributed a higher amount to provident Fund, ie, Rs 659 as against Rs 367 (3.67% of Rs 10000). As per the Supreme Court verdict, the PF Organisation will have to rearrange the funds by transferring the additional amount of Rs 292 (Rs 659 minus Rs 367) from the PF account to Pension account so that the Pension Fund will become equal to 8.33% of Rs 10000 or Rs 833 (ie, 541 already deposited Plus Rs 292 now getting transferred) Now by doing this the Provident Fund will become Rs 367. If you have already withdrawn the PF, ie, Rs 659, obviously with your own share of Rs 1200, you have to refund Rs 292 to Provident Fund Organisation who will put this amount in your Pension Fund account to recalculate your pension.
Formerly the Pension qualifying salary was Rs 6500 but since the employer had contributed PF on higher salary, ie, Rs 10000, this will become the Pension qualifying salary. Obviously the pension will increase. If your PF qualifying salary had been even high, say Rs 60000 or Rs 100000, the pension would also go up. However, with the last amendment of 2014, the PF Organisation has put a ceiling on pension contributing salary to Rs 15000. Since then this has become Rs 15000. With this amendment the pension calculating formula has also been changed. Now, the actual contribution or Rs 15000 whichever is lower will be the base for pension calculation and for the period prior to Sept, 2014, the average of pension qualifying salary for 5 years will also be taken. In this calculation we can make use of the Supreme Court verdict and put the same PF contributed salary as the Pension qualifying salary.
I must say that employees of establishments who do not even think of giving PF to their employees and those who give it just for statutory compliance will not get the benefit of the verdict because they will contribute just what the law states, ie, contribute Pf on Rs 6500 or Rs 15000, as the case may be.
9th December 2017 From India, Kannur
Thanks for your valuable update . Is there any difference between PF funds managed by EPFO & PF fund managed by Trustees as EPFO is at present not allowing the Company's whose PF is managed by Trustees to come under the purview of Higher pension as per the ruling. They are only allowing unexempted establishments . Can you please highlight on this issue?
11th December 2017 From India, Kolkata
The present ruling does not make it applicable to members of exempted establishments. But there will be direction in this regard very soon.
11th December 2017 From India, Kannur
Dear Madhuji,
Thanks a lot for your valuable information.
I have been drawing pension under the EPF&MP Act w.e.f.01/07/2014.My PF salary(earning) on which PF contribution was being deducted prior to my retirement was much higher than the pension wage ceiling(It was Rs.6500/- at the time of my retirement).Is their any circular issued by PF authority inviting applications from PF pensioners for claiming pension on the actual PF wage by depositing the differential pension contribution?
Can you please enlighten me in this regard.
Thanking you,
With Regards,
17th December 2017 From India, Calcutta
PF Organisation is keeping silent on these matters. yesterday the Supreme Court has said that we should wait till the cases pending in Kerala High Court are decided. I think we may have to wait for another couple of months to get a clarity.
19th December 2017 From India, Kannur
EPFO has already issued a circular on 23.03.2017 which is attached, how ever regional offices are going slow on this siting lack gazete publication & verdict on some more cases pending in courts. However they have to ultimately pay the revised pension. The court in the order has already reprimanded EPFO for harassing subscribers. EPFO goes on the assumption that their function is to deny benefits to the subscribers , where as it should be to give as much benefit to subscribers as possible.
Though the SC order does not distinguish between exempted & non exempted categories EPFO is illegally trying to exempt 'exempted category"- the funds managed by the employers themselves), since the supreme court order is specific on giving benefits to all it is only a matter of time that epfo stops this illegal discrimination. Various pensioners' organisations have already taken this up & an on line petition to Labour minister is on . I request all on this board to google the petition & sign the petition.
Increased pension is also applicable to those who are already drawing pension. As per the circular there is a specified form which is not available on line but has to be obtained from local EPF offices. Currently in line with EPFO's mindset they are insisting that only those who apply will be considered & un officially they are also banking on pensioners not being able to pay the eps contribuition already returned along with epf accumulation. This difference will have to be first paid to EPFO, but since arrears of pension they have to give will far exceed the excess contribution it is only common sense to deduct the excess contribution from arrears & pay balance, but EPFO's mindset will not allow that & we may have to approach courts again for that. In short there could be delays but EPFO will be forced to implement the court order, may be EPFO may go bankrupt in the long run or may have to depend on Govt funding, govt will be forced because Govt only passed the law which the SC has rightly interpreted now. I request all off you on this board, pensioners & those who are still employed to go for it, pensioners go to the local office & submit specified form based on which EPFO will inform you about excess contribution to be paid & the EPFO will pay you arrears starting from the commencement of your pension. Please remember that your spouse/ nominee will get half the enhanced pension, just go for it. Next week I will post the specified form.
23rd December 2017 From India, Thane

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File Type: pdf epf circular on full salary 230317 Pension on full salary as per SC order 23.3.2017.pdf (1.24 MB, 250 views)

What is the current status of supreme court case for transfer of high court cases to it.
3rd February 2018
Very recently the Central PF Commissioner has issued a circular to all RPFCs saying that they should be ready to calculate the pension of higher wages at the earliest and it is also seen that the officers should not keep the files pending saying that they have asked for clarification from the Head Office. but the thing is that the software which calculates Pension is still to be modified and for the time being a lot of manual calculations are required to arrive at the pension figure. It should also be noted that no officer will take the risk of manual calculations.
Please find the attachment which a direction to the Regional PF Commissioners.
14th June 2018 From India, Kannur

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File Type: pdf P F Pension on HigherWages -EPF Circular.pdf (486.3 KB, 219 views)

Dear All,
Is there any recent circular where Exempted PF employees can claim for revised Pension amount.
15th June 2018 From India, Kolkata
My last salary on retirement on 30/06/2013 is Rs.10000/- I have applied for Higher Pension. so far not Pension is not revised. my doubt is the average salary 12 months or 60 months for higher pension?
1st November 2018 From India, Hyderabad
Thanks Madhu K .
Issue of exempted employees were under litigation & atleast Kerala HC has recently ruled in favour of exempted category. ( EPFO in their usual eagerness to deny benefits to subscribers had wrongly interpreted the SC judgement to exclude exempted funds).
I also learn that a move to increase minimum pension to 5000/7500 is also under final stages and as usual is being delayed by Govt though agreed. Now I learn that a morcha of pensioners are going to protest in Delhi on Nov 18 or 28 or some day in Nov.
2nd November 2018 From India, Thane
I retired on 31.3.2015 and started getting pension from EPF from 3.10.2015 upon attaining 58 years of age. From 1993 till 2005 I was in a exempted company thereafter after a two year gap I joined unexempted company till my retirement on 31.03.2015. Throughout my contribution was higher than the ceiling limit but since I did not know that I have to give option to avail higher pension I am now getting pension of Rs 2000/- . I would like to know if I am eligible for higher pension considering Supreme Court judgement, Kerala Court judgement and Orders issued by Head office of EPF department alternatively steps I need to take to make good the lost opportunity.
23rd January 2019 From India, Kolkata
Since you have contributed to provident fund on a salary which was above the statutory ceiling of Rs 6500, will be entitled to get higher pension. On withdrawal of your PF accumulations, you would have received the amount your employer have paid to the provident fund in excess of the amount payable had it been limited to 12% of Rs 6500. That amount should be paid back to EPFO and then reprocess your pension based on the actual PF contributing salary.
Let us do a working assuming a salary of Rs 100000.
The PF contribution is not restricted to Rs 6500, but the employer was contributing it on Rs 100000. That means your employer contribution to PF was Rs 12000 as against Rs 780.
Now out of this 12000,only Rs 541 (6500 X 8.33%) was deposited into Pension Fund. The remaining amount of employer contribution,ie, 12000-541 or Rs 11459 is deposited in you Provident Fund account. If the PF authorities had accepted pension fund at the rate of 8.33% on the actual salary, ie, 8.33% of 100000, the amount of contribution to pension fund would be Rs 8333 and if that was the case the employer would be paying that 8333 to pension fund and the remaining, only Rs 3667 (12000 minus 8333) to Provident Fund.
In the first case the employer contribution to PF account will be Rs 11459 and you have withdrawn that amount with interest. Now the second case should be applied. In order to get higher pension you should have contributed on higher salary and if so the contribution to provident fund by the employer will be less, or 3667. This clearly says that as against 3667 you have taken back 11459. Therefore, you have to pay back Rs 7792 (11459 minus 3667) and then recalculate the pension as if the pensionable salary is Rs 100000.
What the PF authorities are saying is that they need time to calculate how much the employees should pay back. There is no system for calculating it in the present software. When we calculate it for one case, it sounds to be okay but when we start doing it for interest part also, then it will become complicated. In some cases where the salary is pretty good, the amount you would have received as withdrawal of PF accumulations would also be high and repaying it would make put a heady burden on you.
1st February 2019 From India, Kannur
Dear All,
There was a circular from EPFO on 22-01-2019 entitling all the EPF members to join for the EPF pension scheme based on the actual salary with the option of paying the additional amount with arrears with interest for this.
Since there is no mention on the Exempted / Non Exempted organizations in this EPFO order, is it application for all the EPF eligible members ?
When is the next Supreme Court hearing on the EPF pension scheme as lots of review petitions are pending in the Supreme Court. It was scheduled for 25-01-2019. Now again this date is postponed. Even the final verdict of the High Court of Kerala has come in favor of the EPF members.
Satheesh Kumar.P
ITI Limited, Palakkad
4th February 2019 From India, Bengaluru
Dear Madhuji,
This is with reference to my query dt.17/12/2017 & your reply dt.19/12/17 in this discussion.After issue of circular no.2896 dt,8/6/18 of Addl.CPFC(Pension),Mr. R.M.Verma,EPFO H.qrs.,Delhi,I had sent reminder mails at 10-20 days’ interval to all concerned RPFCs with copy to ACPFC,Odisha Zonal Office & CPFC,Delhi to intimate me the differential amt ( pension fund contribution on my actual wage/salary – pension contribution already deposited on my my wage/salary upto statutory ceiling) I have to deposit with EPFO and the actual amt of my revised pension amt per month.
Only on 4th March,2019,I received the response from RPFC Office about the amount of total refund to EPFO in the shape of DD towords differential amt of pension contribution together with interest accrued till end of the month and on deposit of the said amount I would be paid revised pension,which has also been informed by the said office.
Now I have the following 2 points to be clarified:
1.When I calculated the amt of my arrear pension for 69 months by simply multiplying the monthly arrear pension amt with 69 without taking into account any interest for the past 69 months,the amt so arrived at is 20 thousand more than the amount I am asked by EPFO to deposit.Why EPFO is not adjusting the amt of my refund to them against the total arrear Pension I am to get?Why I will incur addnl amt by way of DD charges on a huge amt of refund.Are not they doing injustice to a retired senior citizen?Is their such action justified & legally sustainable?
2. As the PFauthority is collecting interest with retrospective effect on the amt of my refund against higher pension contribution till today,whether it is entitled or not tol pay me interest on my arrear pension amt from the dt of my retirement till date ?
Your considered opinion on the matter is highly solicited.
With Regards,
Dt-9th Mar,2019
9th March 2019 From India, Calcutta
Sathish ITi, please attach a circular dated 22/01/19 or any one else who has a copy it. I have on several occassions written on this site about the injustice SK Hota has mentioned, but no response from our lot, it is time we unitedly fight for this even if you have to file an PIL. I have written to BJP cyber cell on this because there was a mail from them asking for input for manifesto for 2019 election. The BJP minister who Jhavdekar who demanded minimumn pension of Rs 3000. form UPA kept mum inspite of being in the ministry which could have moved the issue. The minister Kushwah who negotiaited with Retired employees made some favourable noises & later on TV said that EPFO can't pay every retired employee & can pay only the employees who have got verdict from SC. He also said that Govt is working on minimum pension of Rs 2000/ as if he will be doing a big favour. Now he resigned on the eve of election to MP Rajasthan & MP. EPFO employees have a mind set that their duty is to deny or delay whatever is favourable to EPFO members. Dear Mr Hota, did you apply in the specified form 26 & 3A or just wrote to EPFO. Once again requesting any one to post the EPFO circular dated 22/01/2019.
10th March 2019 From India, Thane
I have got the circular dated 22/01/19 & the copy of Kerala Hc ruling dated 12/10/18. Both are attached. Kerala HC has up held the petitioner employees contentions 7 rejected Govts' contention. It reads like "For the foregoing reasons, the petitioners are entitled to succeed. The writ petitions are all allowed as
i) The Employee's Pension (Amendment) Scheme, 2014 brought into force by Notification
No. GSR. 609(E) dated 22.8.2014 evidenced by Ext.P8 in W.P.(C) No. 13120 of 2015 is set
ii) All consequential orders and proceedings issued by the Provident Fund
authorities/respondents on the basis of the impugned amendments shall also stand set aside.
W.P.(C). 13120/2015 & con.cases
iii) The various proceedings issued by the Employees Provident Fund Organization declining to grant
opportunities to the petitioners to exercise a joint option along with other employees to remit
contributions to the Employees Pension Scheme on the basis of the actual salaries drawn by them are
set aside.
iv) The employees shall be entitled to exercise the option stipulated by paragraph 26 of the EPF
Scheme without being restricted in doing so by the insistence on a date.
v) There will be no order as to costs.
Sd/-" Hence there was no reason to withdraw the circular, if we keep quiet the Govt current & future will take us for a ride.
10th March 2019 From India, Thane

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File Type: pdf epfo circular 070219 Pension-I_12_33_96_Amendments_Vol.IV_17154.pdf (284.6 KB, 11 views)
File Type: pdf epf kerala high cort order 121018 jist P.Sasikumar vs Union Of India (Uoi) on 12 October, 2018.pdf (81.1 KB, 11 views)

Dear Mr. Raghvant,

Since I have retired from service prior to sep,2014,I am entitled for higher pension as per Apex Court's order,there is no doubt of it.I have just received the letter from EPFO to deposit the refund amt to get higher pension w.e.f. from my retirement date i.e.1/7/2013.
Only I am to get clarification as to whether the EPFO is justified to ask me to deposit the refund amt without adjusting the said amt from my arrear revised pension amt ?
The EPFO circular dtd.22/1/2019 is attached
With Regards,
10th March 2019 From India, Calcutta

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File Type: jpg EPFO Circular dt.22.1.2019.jpg (89.8 KB, 16 views)

Dear Mr SK Hota,
You are lucky that you have at least got this letter, congratulations & go ahead, Did they inform you the enhanced pension amount? What is the difference between arrears to be paid & Arrears of pension you will get (you will get arrears from the date of retirement) According to me in your lifetime it self you will be able to recover much more than what you pay, don't forget that your wife will be entitled to half that amount as pension if anything happens to you(praying god to keep you healthy). Now your million dolllar question, if EPFO wanted to be rational they could have pro-actively calculated the arrears & enhanced pension of each pensioner & could have offered to adjust arrears & informed each and every pensioner, but un fortunately EPFO thinks that making the life of pensioners as miserable as possible is their job function. All the details which EPFO is asking to process your enhanced pension like form 26 & 3 A and it's attachments are already available with EPFO.
Now I request a few details from you .1. Did you apply in the specified form 26 & 3A or just shot of a letter ? If applied with the forms did you get your employer to sign those forms?
Now why asking these are; most of the pensioners must have changed jobs a few times & some employers must have even wound up or taken over by some other companies, in these situations it is almost impossible to get all the employers to sign these forms. I am in similar situation & I had retired in 2007, 12 years back, in the last employment a stupid lady with her "Thuglak " reforms stopped paying contribution on full salary. And technically there is no "EMPLOYER' in case of an already retired person. So if EPFO is subscriber friendly they should act pro actively as I mentioned.
I request all to post their experiences on this enhanced pension so that all retirees get benefited.
Now as for the circular of 22/01/2019 ,this has been with drawn citing a Kerala High court order, there was no reason to withdraw the circular because the HC had confimed that employees entitlement for higher pension, HC order i have already attached to my previous post. Now I am attaching the circular withdrawing the 22/01/2019 circular
12th March 2019 From India, Thane

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File Type: pdf epfo circular 070219 Pension-I_12_33_96_Amendments_Vol.IV_17154.pdf (284.6 KB, 8 views)

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