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Employees would be entitled to benefits of deposit of 8.33 of the actual salary in pension fund irrespective of the ceiling limit. - The Employees Provident Funds and Miscellaneous Provisions Act, 1952

Employer's contribution was deposited on the actual salary and not on the basis of ceiling limit. Under Clause 11(3) of the Pension Scheme, the maximum pensionable salary was limited to Rs. 5000 and later on enhanced to Rs. 6,500 Proviso to Clause 11(3) permits an option to employer and employee for contribution on salary exceeding the limit. 8.33% of the contribution on actual salary was remitted to Pension Fund. At the eve of retirement the employees claimed benefit on the basis of actual contributions. The EPF Authority denied the same, limited it to prescribed limits. The employees flled writ petition challenging the order of the EPF Authority which was allowed by the Learned Single Judge. Division Bench reversed the order of the Learned Single Judge. Employees filed appeal challenging the order of the Division Bench. It has been held by the Court that proviso to Clause 11(3) is not having any cutoff date determine the eligibility of employer-employee to indicate their option. The Pension Scheme is a beneficial to the employees. The exercise of the option under Paragraph 26(6) would not foreclose the exercise of further option under Clause 11(3) of the Scheme unless the circumstances warranting such foreclosure are clearly indicated. Hence, the employees would be entitled to benefit of deposit of 8.33% of their actual salary contributions in Pension Fund irrespective of the ceiling limit. Order of the Division Bench is set aside and that of the Learned Single Judge is confirmed.

-R.C. Gupta & Ors. Etc. etc. vs. Regional Provident Fund Commissioner & Ors. 2017 LLR 866 (S.C)

THE EMPLOYEES' PROVIDENT FUNDS AND MISC. PROVISIONS ACT, 1952

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