Supreme Court Judgment on EPS Contribution
I am a private sector employee contributing to EPF and EPS since 2007. As per the Supreme Court judgment in 2017, it is now possible for employees to ask their employer to contribute 8.33% of the entire basic salary to EPS instead of 8.33% of Rs 15,000 (Rs 1250). I checked with my employer, and they are not aware of this. They are asking for relevant material on this. Can someone help me with how I can approach this? Are there any judgment documents available that state my employer can send a letter to RPF to increase my EPS contribution to 8.33% of the entire basic salary?
Below are links I have from my search over the internet:
- https://www.relakhs.com/higher-eps-p...me-court-order
- https://blogs.compliancecalendar.in/...-find-out-1147
Acknowledge(0)
Amend(0)
I am a private sector employee contributing to EPF and EPS since 2007. As per the Supreme Court judgment in 2017, it is now possible for employees to ask their employer to contribute 8.33% of the entire basic salary to EPS instead of 8.33% of Rs 15,000 (Rs 1250). I checked with my employer, and they are not aware of this. They are asking for relevant material on this. Can someone help me with how I can approach this? Are there any judgment documents available that state my employer can send a letter to RPF to increase my EPS contribution to 8.33% of the entire basic salary?
Below are links I have from my search over the internet:
- https://www.relakhs.com/higher-eps-p...me-court-order
- https://blogs.compliancecalendar.in/...-find-out-1147
Acknowledge(0)Amend(0)
EPF Contribution Ceiling
Employers will maintain the ₹15,000 ceiling or not, depending on the employer's policy. In most cases, the EPF salary is capped at ₹15,000. However, if all employees express their willingness to contribute based on the entire basic salary or gross salary, the employer must consider their payment capability, as it is a money-related issue. EPF mandatory rules are already in place for employee welfare and promotion consideration, but one cannot enforce them to do so.
EPS Contribution Over ₹15,000
EPS contribution over ₹15,000 is a cumbersome process and is not possible for a single person or a few members. However, if the entire establishment wishes to do it, it can be done, provided that the administrative charges and EDLI charges above ₹15,000 are recovered from the employee.
Acknowledge(0)Amend(0)
651Employers will maintain the ₹15,000 ceiling or not, depending on the employer's policy. In most cases, the EPF salary is capped at ₹15,000. However, if all employees express their willingness to contribute based on the entire basic salary or gross salary, the employer must consider their payment capability, as it is a money-related issue. EPF mandatory rules are already in place for employee welfare and promotion consideration, but one cannot enforce them to do so.
EPS Contribution Over ₹15,000
EPS contribution over ₹15,000 is a cumbersome process and is not possible for a single person or a few members. However, if the entire establishment wishes to do it, it can be done, provided that the administrative charges and EDLI charges above ₹15,000 are recovered from the employee.
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Recent Judgment of Honble Supreme Court on Wage eligible for contribution.pp tx
Supreme court judgment on min wages (AIRFREIGHT).pd f