The Supreme Court order dated 04 November, 2022 has upheld the validity of the Employees Pension (Amendment) Scheme of 2014. The 2014 amendment had capped the maximum pensionable salary (basic pay plus dearness allowance) at Rs 15,000 per month. However, the Supreme Court order has quashed this threshold limit of Rs 15,000 monthly salary for joining the pension fund. Prior to the amendment, the maximum pensionable salary was capped at Rs 6,500 a month.
The order has directed that employees who have not exercised the option to join the pension scheme must do so within six months. The bench further held as invalid the condition in the 2014 scheme that required employees to make a further contribution at 1.16 per cent on salary exceeding Rs 15,000.