New Delhi: Even as the Union government is opposing a Kerala High Court directive to grant Provident Fund pension proportionate to salary, it is likely to rework the upper-salary limit for the crucial social security payout. Meanwhile, the Supreme Court is set to take up on January 29 the Labour Ministry's petitions against the same verdict.
In a meeting with the representatives of employers the other day, the government authorities hinted about increasing the existing upper salary cap for the PF pension from Rs 15,000 to Rs 21,000.
Earlier the upper salary limit for PF pension was Rs 6,500 which was increased to Rs 15,000 in 2014. Then the workers had pointed out in a plea the unfair method of calculation.
On the basis of the plea the Kerala High Court had ruled in 2018 that the pension granted should be proportionate to the salary.
The appeal filed against the HC verdict by Employees Provident Fund Organisation (EPFO) was rejected by the Supreme Court.
Last week while hearing the petitions, the apex court had stated that the case was posted for January 25. However, the order issued later mentioned the date as January 29.
The EPFO had earlier directed to rise the upper salary limit to Rs 25,000. The officials clarified that final decision has not been taken based on the suggestions and recommendations which came up during the discussions. They claimed that some of the employees’ organisations had also demanded increasing the upper-salary limit.
The system of granting pension proportionate to the contribution made by each member is also under consideration. In case if this system is implemented then there would be no change in the pension of existing members. However, a section of employees argue that such a system would deprive the pension scheme of its social security intent.