In Brief
The Supreme Court upheld the constitutional validity of the 2014 Employees' Pension Scheme amendments raising the pensionable salary ceiling from Rs. 6,500 to Rs. 15,000 per month and altering the computation method. However, it struck down the requirement for employees to contribute 1.16% of salary exceeding Rs. 15,000 as beyond statutory authority, suspending this for six months to allow legislative remedy. The Court rejected the authorities' prior interpretation imposing a cut-off date for exercising pension options, extending eligibility by four months to allow all entitled employees to opt for enhanced coverage. Employees of exempted establishments were granted equal rights with unexempted establishment employees. The altered pensionable salary calculation methodology was upheld as valid.
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