Business Standard

Explainer: New EPS rules and why higher pension will come at a cost

Employees need to weigh the pros and cons before opting for a higher pension; EPFO also needs to clarify how the higher contribution to EPS will be funded

I-T returns, filing, income tax, investment
Premium

Sanjay Kumar Singh New Delhi
What happened in 2014?

In 2014, the Employees’ Provident Fund Organisation (EPFO) raised the ceiling on the Employees’ Pension Scheme (EPS) from Rs 6,500 to Rs 15,000. It said then that people could not contribute above this limit of Rs 15,000. The matter went to court.

What did the Supreme Court (SC) say in its November 4, 2022 judgment?

The SC made several points. One, it said those who were employees before September 1, 2014, and who have continued to be employees after that date, need to be given an additional four months to make the choice of whether or

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Feb 21 2023 | 4:14 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com