Kochi: A division bench of the Kerala High Court on Friday set aside the amendments made to the Employees’ Pension Scheme in 2014, nullifying all the anti-employee provisions in the Employees’ Provident Fund Organisation (EPFO) order.
The bench, comprising Justices K Surendra Mohan and A M Babu, held that employees who contribute on capped wages would be eligible to exercise the option to remit contributions on the basis of actual salary drawn by them.
As per the court directive, the employees cannot be restricted in doing so by the insistence on the date. The bench also nullified the EPFO order stipulating the calculation of pensionable amount on the basis of the average 60 months’ salary instead of 12 months to determine the last drawn salary amount.
The Provident Fund authority had no right to deny the benefits of their contributions on the ground that the fund would get depleted, the court added.
The court also expressed disapproval of the decision to cap the salary at Rs 15,000 for quantifying pension. It would deprive a majority of the employees an opportunity to lead a dignified life in their old age. Hence, the amendment limiting the maximum pensionable salary to Rs 15,000 per month, even for employees who contributed on the basis of actual salary drawn by them, cannot be sustained.
The amendment, which omitted an earlier provision permitting exercise of joint option by the employer and employees to contribute to the Pension Scheme, thus drastically reducing the pension amount, defeats the purpose of enactment, the court added.
The bench passed the verdict acting upon as many as 507 writ petitions filed by various organisations and individuals challenging the Employees’ Pension (Amendment) Scheme of 2014.
Contending that the amendment was arbitrary and against the spirit of the scheme, the court pointed out that it could not be sustained.
Key points
• All orders and proceedings issued by the Provident Fund authorities on the basis of the Employees’ Pension (Amendment) Scheme of 2014 were set aside.
• The court nullified the EPFO order declining to grant opportunities to the petitioners to exercise a joint option to remit contributions to the EPS on the basis of actual salaries drawn by them.
• The employees are allowed exercise the option demanded by the scheme without being restricted in doing so by the insistence on the date.
Read more: Latest Kerala news
