EPS-95 Higher Pension: Great news for millions of private sector workers! The Bombay High Court has made an important decision that protects employees’ rights. The court ruled that the Employees’ Provident Fund Organization (EPFO) cannot deny eligible workers’ higher pension requests just because their company’s PF trust rules don’t mention it. The EPFO has been ordered to review and approve joint option applications for over 40 employees within eight weeks.
This ruling opens doors for thousands of private workers whose applications were rejected simply because their company’s trust rules didn’t include a specific higher pension option.
Instructions to give higher pension in 8 weeks
Justice Sandeep V. Marne announced this decision on October 19. The case involved petitions from over 40 employees at companies including Abbott India, Tata Communications, Raymond Steel, and BEST Undertaking. These employees challenged EPFO decisions that rejected their higher pension requests. The court cancelled these decisions and instructed that joint option applications for these employees be reviewed and approved within eight weeks.
EPFO rejects higher pension application citing trust rules
Some companies operate their own PF trusts after getting exemptions. These trust rules often cap contributions to a set salary level or don’t clearly allow for a joint option to get a higher pension. The EPFO used these rules to reject employee applications. In some situations, concerns were raised about missing paperwork and how different salary parts were counted. Employees argued that company PF trust rules shouldn’t prevent them from accessing the higher pension option that EPS-95 provides.
Can PF Trust rules stop your higher pension?
The court made it clear that PF Trust rules cannot reject a qualified employee’s request just because they have a contribution cap or don’t offer a joint option for higher pension. The court also noted that PF Trust rules mainly deal with PF contributions. Based on these
The Supreme Court’s decision in EPFO vs. Sunil Kumar B. was also considered in this case. The Supreme Court upheld the 2014 EPS amendments. Employees who meet the prescribed conditions can opt for a higher pension based on PF contributions at higher salaries. The court also stated that if past records are not available, other methods can be used for verification. If necessary, employees should be given an opportunity to present their views. However, this decision will not automatically grant higher pensions to all EPFO members. For this, the eligibility and contribution requirements of EPS-95 must be met.
Salary limit increased from Rs 15,000 to Rs 25,000
It’s also important to understand the difference between PF and EPS. Both employees and employers contribute to EPF, but a portion of the employer’s contribution goes to EPS as per the rules. The EPS salary limit was raised to Rs 15,000 per month in 2014. It is proposed to increase it to Rs 25,000 from September 17th. Employees who have contributed to PF at salaries above the prescribed limit can apply for a joint option for a higher pension if they meet the eligibility criteria.