Enhanced pension on actual salary not on ceiling salary, final verdict by SC

raghavant
In view of the SC verdict reported in TOI today which finally throws out all the delaying tactics of EPFO & Govt, what is the action to be expected? To be logical EPFO should on it's own calculate the arrears to be paid & the pension expected to all the pensioners & ask their consent for paying arrears to receive higher pension. Today EPFO is asking for details from pensioners & want it o be certified by employers, which is practically impossible for people who have retired long back & who have changed jobs a few times. some of the employers must have vanished. Above all EPFO has all the data available with them based on which they calculated the pension & returned the EPS contribution paid above ceiling salary. Unfortunately EPFO is so much non-transparent they don't even intimate how they have arrived at the pension amount & EPF accumulation amount. I suggest all pensioners write to their regional EPF offices siting their PPO no (pension paying order), asking EPFO to intimate the arrears to be paid & expected enhanced pension & pension arrears. All the circulars which EPFO has issued to their regional offices urging regional offices to disburse enhanced pension have been so far withdrawn within days / months of issue. Don't just wait for EPFO's so called prescribed forms. TOI report dated 02/04/2019 attached.
1 Attachment(s) [Login To View]

Madhu.T.K
This benefits only to employees of those organisations who pay PF on actual salary without limiting the PF qualifying salary at Rs 15000. For more details please follow the link.
https://madhu-t-k.blogspot.com/2019/...tributing.html
Madhu T K
raghavant
Madhu T. K,
Now that SC by their verdict dated 04/10/2016 has allowed opting for higher contribution on actual salary with out any time restriction, is it not trues that any one even retired can now give an option to pay difference amount in arrears of contribution between actual salary & ceiling salary and can get the enhanced pension? Copy of SC verdict attached.
1 Attachment(s) [Login To View]

Madhu.T.K
Certainly any person can give that option and pay back the amunt already drawn in excess from the PF with interest (I think the Supreme Court has fixed an interest rate of 6%). However, this does not apply to employees of establishments which had remitted PF capping the same to Rs 6500 or 15000, as the case may be. Please follow the link below
https://madhu-t-k.blogspot.com/2019/...tributing.html
sivadasanvasu
As per the verdict of SC, now special allowance being paid to employees to be clubbed with basic payment for contribution of PF. Hence, some employers are restructuring the salary of their employees without any increase in basic pay and diverting the excess amount of special allowance than the ceiling of PF contribution Rs.15,000/- in to telephone expenses etc to save gratuity liability . I would like to know whether this practice is fair in view of SC verdict.
Under the circumstances, please confirm whether payment of special allowance will also be a liability for Gratuity payment in future.
Regards,
Sivadasan
Madhu.T.K
Having decided the meaning of basic salary for the purpose of PF contribution, the next fight will be for an interpretation of the meaning of wages under the Payment of Gratuity Act. The definition of wages under Payment of Gratuity Act is identical to the one given in EPF & MP Act. As such any amount earned by an employee while on duty or on leave is wages/salary. For example, if your salary is Rs 50000 and it is broken into Rs Basic Rs 10000, HRA Rs 5000, Conveyance Rs 3000 and Special allowance, the balance Rs 32000. If you take a CL you are paid for that day not on the basis of basic pay but you are paid on the basis of the whole salary.If you take a leave without pay, your day's salary is deducted not on the basis of basic pay or Rs 333 (10000/ 30) but it will be Rs 1667 (50000/30) which is deducted from your salary. That means whatever be the break up, the salary agreed to be paid to the employee is the gross salary and this is the amount on which gratuity should be calculated.
Now coming to the restructuring of the salary in order to avoid contribution, I would say that if you take the allowances like telephone,medical etc as 'reimbursements' then it will work in favour of the employers because reimbursement against bills produced will be out of scope of wages. But how much can you pay for telephone when telephone with 4G data unlimited is available at Rs 300 and 400 per month? Similarly, you cannot say that you pay more than the amount required for food for meeting medical bills and if so, how much will an employee spend on that? Therefore, whatever restructuring is done, it is not going to help the employer because at the end of the day it can be proved that the gross amount is the amount agreed as per contract of employment.
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute