Sir, Good Morning, This is regarding Pension on Higher Wages (PHW):
1. Working with company since May 1997.
2. PF is applicable to the company since the inception of the establishment.
3. Till March-2007, salary was less than Wage ceiling under the act, i.e. Rs.6,500 per month and PF was deducted accordingly from salary and also company was paying matching contribution.
4. From April-2007, salary was exceeded the wage ceiling under the act, i.e. Rs.6,500 but PF was deducted restricted on wage ceiling from salary and also company was paying matching contribution.
5. From April-2008, both (EE-ER) have started to pay PF contribution on actual salary without exercising option, even though salary was more than prevalent wage ceiling and still it is continue. In this case pension contribution is being paid restricted on prevalent wage ceiling.
6. As per last judgement of Hon’ble Supreme Court dtd.04/11/2022 on the subject matter, applied for validation of joint option for pension on higher wages online on Portal before it’s last date.
7. After the online application, the department asked few details/proof of remittances etc and submitted the requested all details/documents.
After scrutinising the papers, Department *denied* orally that as per para 11(3) of the scheme, *not eligible for higher pension as the contribution was not paid when salary exceeded wage ceiling i.e. April-2007*.
Question is why not eligible for a higher pension from April-2008 as both (EE-ER) have contributed PF amount on actual salary from April-2008 even though salary was more than prevalent wage ceiling ??
Anticipating your expert advice on this.
From India
1. Working with company since May 1997.
2. PF is applicable to the company since the inception of the establishment.
3. Till March-2007, salary was less than Wage ceiling under the act, i.e. Rs.6,500 per month and PF was deducted accordingly from salary and also company was paying matching contribution.
4. From April-2007, salary was exceeded the wage ceiling under the act, i.e. Rs.6,500 but PF was deducted restricted on wage ceiling from salary and also company was paying matching contribution.
5. From April-2008, both (EE-ER) have started to pay PF contribution on actual salary without exercising option, even though salary was more than prevalent wage ceiling and still it is continue. In this case pension contribution is being paid restricted on prevalent wage ceiling.
6. As per last judgement of Hon’ble Supreme Court dtd.04/11/2022 on the subject matter, applied for validation of joint option for pension on higher wages online on Portal before it’s last date.
7. After the online application, the department asked few details/proof of remittances etc and submitted the requested all details/documents.
After scrutinising the papers, Department *denied* orally that as per para 11(3) of the scheme, *not eligible for higher pension as the contribution was not paid when salary exceeded wage ceiling i.e. April-2007*.
Question is why not eligible for a higher pension from April-2008 as both (EE-ER) have contributed PF amount on actual salary from April-2008 even though salary was more than prevalent wage ceiling ??
Anticipating your expert advice on this.
From India
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.