Supreme Court Verdict on EPFO: Expected Actions
In view of the Supreme Court verdict reported in TOI today, which finally dismisses all the delaying tactics of EPFO & Govt, what actions can be expected? Logically, EPFO should independently calculate the arrears to be paid and the expected pension for all pensioners. They should seek consent from pensioners for paying arrears to receive a higher pension. Currently, EPFO is requesting details from pensioners to be certified by their employers. This requirement is practically impossible for retirees who changed jobs several times or for whom some employers may be unreachable. EPFO already possesses the necessary data to calculate pensions and return any excess EPS contributions made above the ceiling salary. Unfortunately, EPFO lacks transparency in communicating how they determine pension and EPF accumulation amounts.
Recommendation for Pensioners
I recommend that all pensioners write to their regional EPF offices, providing their PPO numbers (pension paying order), and requesting EPFO to disclose the arrears due, the anticipated increased pension, and any outstanding pension amounts. Several circulars issued by EPFO to regional offices, urging the disbursement of enhanced pension, have been swiftly withdrawn shortly after release. Pensioners should not rely solely on EPFO's prescribed forms.
TOI report dated 02/04/2019 is attached.
From India, Thane
Acknowledge(0)
Amend(0)
49In view of the Supreme Court verdict reported in TOI today, which finally dismisses all the delaying tactics of EPFO & Govt, what actions can be expected? Logically, EPFO should independently calculate the arrears to be paid and the expected pension for all pensioners. They should seek consent from pensioners for paying arrears to receive a higher pension. Currently, EPFO is requesting details from pensioners to be certified by their employers. This requirement is practically impossible for retirees who changed jobs several times or for whom some employers may be unreachable. EPFO already possesses the necessary data to calculate pensions and return any excess EPS contributions made above the ceiling salary. Unfortunately, EPFO lacks transparency in communicating how they determine pension and EPF accumulation amounts.
Recommendation for Pensioners
I recommend that all pensioners write to their regional EPF offices, providing their PPO numbers (pension paying order), and requesting EPFO to disclose the arrears due, the anticipated increased pension, and any outstanding pension amounts. Several circulars issued by EPFO to regional offices, urging the disbursement of enhanced pension, have been swiftly withdrawn shortly after release. Pensioners should not rely solely on EPFO's prescribed forms.
TOI report dated 02/04/2019 is attached.
From India, Thane
Acknowledge(0)Amend(0)
This benefit applies only to employees of those organizations that pay PF on actual salary without limiting the PF qualifying salary at Rs 15,000. For more details, please follow the link: [https://madhu-t-k.blogspot.com/2019/04/pension-based-on-actual-pf-contributing.html](https://madhu-t-k.blogspot.com/2019/04/pension-based-on-actual-pf-contributing.html).
Madhu T K
From India, Kannur
Acknowledge(1)Amend(0)
Madhu T K
From India, Kannur
Acknowledge(1)Amend(0)
Madhu T. K,
Now that the Supreme Court, by their verdict dated 04/10/2016, has allowed opting for a higher contribution based on actual salary without any time restriction, is it not true that anyone, even those who have retired, can now choose to pay the difference amount in arrears of contribution between actual salary and the ceiling salary and thereby receive an enhanced pension?
Copy of the Supreme Court verdict is attached.
From India, Thane
Acknowledge(0)Amend(0)
Now that the Supreme Court, by their verdict dated 04/10/2016, has allowed opting for a higher contribution based on actual salary without any time restriction, is it not true that anyone, even those who have retired, can now choose to pay the difference amount in arrears of contribution between actual salary and the ceiling salary and thereby receive an enhanced pension?
Copy of the Supreme Court verdict is attached.
From India, Thane
Acknowledge(0)Amend(0)
Certainly, any person can choose to pay back the amount already drawn in excess from the PF with interest (I believe the Supreme Court has set the interest rate at 6%). However, this option does not apply to employees of establishments that had remitted PF capping it at Rs 6,500 or Rs 15,000, depending on the case. For more information, please visit the following link: [Pension Based on Actual PF Contribution](https://madhu-t-k.blogspot.com/2019/04/pension-based-on-actual-pf-contributing.html)
From India, Kannur
Acknowledge(1)
Amend(0)
From India, Kannur
Acknowledge(1)Amend(0)
Clarification on Special Allowance and Gratuity Liability
As per the verdict of the Supreme Court (SC), the special allowance currently being paid to employees should be combined with the basic payment for PF contributions. Consequently, some employers are restructuring their employees' salaries without increasing the basic pay and redirecting the excess amount of the special allowance above the PF contribution ceiling of Rs. 15,000 into expenses such as telephone costs to reduce gratuity liability. I am seeking clarification on whether this practice aligns with the SC verdict.
Under these circumstances, could you please confirm whether the payment of the special allowance will also be considered a liability for gratuity payments in the future?
Regards, Sivadasan
From India, Udaipur
Acknowledge(0)Amend(0)
As per the verdict of the Supreme Court (SC), the special allowance currently being paid to employees should be combined with the basic payment for PF contributions. Consequently, some employers are restructuring their employees' salaries without increasing the basic pay and redirecting the excess amount of the special allowance above the PF contribution ceiling of Rs. 15,000 into expenses such as telephone costs to reduce gratuity liability. I am seeking clarification on whether this practice aligns with the SC verdict.
Under these circumstances, could you please confirm whether the payment of the special allowance will also be considered a liability for gratuity payments in the future?
Regards, Sivadasan
From India, Udaipur
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.
SUPREME COURT ORDER ON EPF - GWALIOR HIGH COURT.pdf
Supreme Court's verdict on using abusive language against superior.docx