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Employee Provident Fund: Working in exempted establishment? Court says this about your pension

Employee Provident Fund: Working in exempted establishment? Court says this about your pension

Provident Fund, Pension for Exempted Establishment: Is an employee of an exempted establishment entitled to higher pension based on his contribution towards Provident Fund, made on the actual salary, over and above the ceiling limit?

Provident Fund, Pension for Exempted Establishment: Is an employee of an exempted establishment entitled to higher pension based on his contribution towards Provident Fund, made on the actual salary, over and above the ceiling limit prescribed under the EPF Act and its Schemes from time to time? Also, If an employee of an exempted establishment entitled to benefits at par with those working in non-exempted establishment as far as the EPF Act and its Schemes are concerned? Similar questions came up before the Delhi High Court this year in Bhartiya Khadya Nigam Karamchari Sangh and Anr. vs. Union of India & Ors.

The petitioners had claimed they were denied higher pension on the ground that benefits guaranteed by the SC Judgement in RC Gupta case, which permitted for pension to be paid on contributions on actual salary. The petitioners also claimed that they were entitled to the benefits provided by the judgement. However, they claimed, the FCI, which is an exempted establishment, had denied them the benefits. The petitioners further said that EPFO had issued a letter dated 31.05-2017, creating two classes – exempted establishment and non-unexempted establishment and sought to deny benefit of RC Gupta judgement to employees of exempted establishment.


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