Good Morning. This is regarding Pension on Higher Wages (PHW):
1. I have been working with the company since May 1997.
2. PF has been applicable to the company since the inception of the establishment.
3. Till March 2007, my salary was less than the wage ceiling under the act, i.e., Rs. 6,500 per month, and PF was deducted accordingly from my salary, with the company also paying a matching contribution.
4. Starting from April 2007, my salary exceeded the wage ceiling under the act, i.e., Rs. 6,500. However, PF deductions were restricted to the wage ceiling from my salary, with the company continuing to pay a matching contribution.
5. Since April 2008, both employee and employer contributions have been based on the actual salary without opting otherwise, even though the salary exceeded the prevalent wage ceiling. Pension contributions in this case are still being paid based on the prevalent wage ceiling.
6. Following the latest judgment of the Honorable Supreme Court dated 04/11/2022 on this matter, I applied for the validation of a joint option for a pension on higher wages online before the deadline.
7. Subsequent to the online application, the department requested additional details/proof of remittances, which I promptly submitted.
Upon review of the documents, the Department orally denied the request, citing that as per para 11(3) of the scheme, I am not eligible for a higher pension since the contribution was not paid when the salary exceeded the wage ceiling in April 2007.
My question is, why am I not eligible for a higher pension from April 2008 onwards, considering both employee and employer contributions have been based on the actual salary since then, even though the salary was above the prevailing wage ceiling?
1. I have been working with the company since May 1997.
2. PF has been applicable to the company since the inception of the establishment.
3. Till March 2007, my salary was less than the wage ceiling under the act, i.e., Rs. 6,500 per month, and PF was deducted accordingly from my salary, with the company also paying a matching contribution.
4. Starting from April 2007, my salary exceeded the wage ceiling under the act, i.e., Rs. 6,500. However, PF deductions were restricted to the wage ceiling from my salary, with the company continuing to pay a matching contribution.
5. Since April 2008, both employee and employer contributions have been based on the actual salary without opting otherwise, even though the salary exceeded the prevalent wage ceiling. Pension contributions in this case are still being paid based on the prevalent wage ceiling.
6. Following the latest judgment of the Honorable Supreme Court dated 04/11/2022 on this matter, I applied for the validation of a joint option for a pension on higher wages online before the deadline.
7. Subsequent to the online application, the department requested additional details/proof of remittances, which I promptly submitted.
Upon review of the documents, the Department orally denied the request, citing that as per para 11(3) of the scheme, I am not eligible for a higher pension since the contribution was not paid when the salary exceeded the wage ceiling in April 2007.
My question is, why am I not eligible for a higher pension from April 2008 onwards, considering both employee and employer contributions have been based on the actual salary since then, even though the salary was above the prevailing wage ceiling?