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Date: 03-May-2023 Category: Extra Ordinary State: Union Government Country: India

Notification under Section 16 (1)(b)(i) of the Code on Social Security, 2020

Issued by Ministry of Labour and Employment · Social Security I

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Executive Summary & Key Takeaways

What it means

  • This notification pertains to changes in the Employees' Pension Scheme (EPS), 1995, following a Supreme Court judgment.
  • The notification addresses the contribution rates for members who opted for the joint option under paragraph 11 of the EPS, 1995.
  • It increases the employer's contribution and clarifies the applicability of the increased contribution to wages exceeding fifteen thousand rupees per month.
  • The changes are made under the powers conferred by the Code on Social Security, 2020, and are deemed to be in effect from September 1, 2014.

Key Changes

  • The employer's contribution for eligible members who exercised the joint option under the EPS, 1995, will increase by 1.16%.
  • Specifically, the employer's contribution will increase from the existing 8.33% to 9.49% of the basic wages, dearness allowance, and retaining allowance of each member.
  • The increased contribution applies to the portion of basic wages, dearness allowance, and retaining allowance that exceeds fifteen thousand rupees per month.
  • The notification is deemed to have come into effect on September 1, 2014.

Impact Analysis

Employers

  • Action Item: Review payroll processes and update systems to reflect the revised contribution rates. Calculate and remit any arrears from September 1, 2014.

Employees

  • Action Item: Review pension statements to confirm accurate reflection of increased employer contributions.

Government/EPFO

  • Action Item: Update internal systems and processes to reflect the revised contribution rates. Communicate changes to stakeholders.

Key Entities Referenced

Supreme Court of India: The Hon'ble Supreme Court's judgment in Civil Appeal No. 8143-8144 of 2022 (Employees’ Provident Fund Organisation and others versus Sunil Kumar B. and others) triggered this notification. Employees' Pension Scheme, 1995: The pension scheme under which the contributions are made and which is being amended by this notification. Employees' Provident Funds and Miscellaneous Provisions Act, 1952: The original act that governed the provident fund, which has now been subsumed under the Code on Social Security, 2020. Code on Social Security, 2020: The legislation under which the current notification is issued, replacing the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. EPFO (Employees' Provident Fund Organisation): The organization responsible for managing and administering the Employees' Provident Fund and related schemes.
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-डी.एल.-अ.-03052023-245643 xxxGIDHxxx CG-DL-E-03052023-245643 xxxGIDExxx असाधारण EXTRAORDINARY भाग II—खण् ड 3—उप-खण्ड (ii) PART II—Section 3—Sub-section (ii) प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 1973] नई दिल्ली, बुधिार, मई 3, 2023/ििै ाख 13, 1945 No. 1973] NEW DELHI, WEDNESDAY, MAY 3, 2023/ VAISAKHA 13, 1945 श्रम और रोिगार मत्रं ालय अजधसचू ना नई दिल्ली, 3 मई, 2023 का.आ. 2061(अ).—माननीय उच् चतम न्यायालय न े कममचारी भजिष्य जनजध संगठन और अन्य बनाम सुनील कुमार बी. और अन्य के साथ टैग दकए गए अन्य मामलों म ें िर्म 2022 की जसजिल अपील सख्ं या 8143-8144 [2019 की एसएलपी(जस) स.ं 8658-8659] में तारीख 4 निंबर, 2022 के अपन े जनणमय म ें यह अजभजनधामररत दकया दक कममचारी पेंिन स्ट्कीम, 1995 के परै ा 11 के उप पैरा 4 के उपबंधों के अधीन अजतररक्त अजभिाय के रूप म ें सिस्ट्यों की उनके िेतन के 1.16 प्रजतित की िर स े अजभिाय करने की अपेक्षा उस पररमाण तक, िहां ऐसा िेतन प्रजतमास पन्रह हिार रुपए स े अजधक हो िाता ह,ै कममचारी भजिष्य-जनजध और प्रकीणम उपबंध अजधजनयम, 1952 (1952 का 19) के उपबंधों के अजधकारातीत ह ै; और माननीय उच्चतम न्यायालय ने उक्त जनणमय के पूिोक्त उजल्लजखत भाग के प्रचालन को छह मास की अिजध के जलए जनलंजबत कर दिया ह ैतथा प्राजधकाररयों को उक्त स्ट्कीम म ेंसमायोिन करन े का जनिेि दिया ह ै; और तिनुसार, माननीय उच्चतम न्यायालय के उक्त जनिेिों का अनुपालन करन े के जलए तथा चूंदक कममचारी भजिष्य-जनजध और प्रकीणम उपबधं अजधजनयम, 1952 (1952 का 19) को सामाजिक सुरक्षा संजहता, 2020 (2020 का 36) में सजममजलत कर जलया गया ह,ै केंरीय सरकार ने उक्त संजहता के सुसंगत उपबधं ों को प्रिृत्त करने का जिजनश्चय दकया ह ै; 2933 GI/2023 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)] अत:, अब, केंरीय सरकार, सामाजिक सुरक्षा संजहता, 2020 (2020 का 36) की धारा 16 की उपधारा (1) के खंड (ख) के उपखंड (i) द्वारा प्रित्त िजक्तयों का प्रयोग करत े हुए, जनम्नजलजखत को अजधसूजचत करती ह,ै अथामत ् :-- (i) उन सिस्ट्यों के संबंध म,ें जिन्होंने कममचारी पिें न स्ट्कीम, 1995 के पैरा 11 के उपबंधों के अधीन अजभिाय करने के संयुक्त जिकल्प का प्रयोग दकया ह ै और जिन्ह ें पात्र पाया गया ह,ै जनयोक्ता का अजभिाय, प्रत्येक सिस्ट्य की आधारभूत मििरू ी, महगं ाई भत्त े और प्रजतधारण भत्त े का जिद्यमान 8.33 प्रजतित, 1.16 प्रजतित स ेबढाकर 9.49 प्रजतित हो िाएगा ; और (ii) बढा हुआ अजभिाय आधारभूत मििरू ी, महगं ाई भत्ता तथा प्रजतधारण भत्त े को उस पररमाण तक, जिस तक आधारभूत मििरू ी, महगं ाई भत्ता और प्रजतधारण भत्ता पन्रह हिार रुपए प्रजतमास स े अजधक हो िाता ह,ै के संबंध म ेंलाग ू होगा । 2. यह अजधसूचना 1 जसतंबर, 2014 को प्रिृत्त हुई समझी िाएगी । [फा. सं. आर-15011/02/2023-एसएस -II] जिभा भल्ला, संयक्ु त सजचि MINISTRY OF LABOUR AND EMPLOYMENT NOTIFICATION New Delhi, the 3rd May, 2023 S.O. 2061(E).—Whereas the Hon’ble Supreme Court had vide its Judgment, dated the 4th November, 2022, in Civil Appeal No. 8143-8144 of 2022 [SLP(C) Nos. 8658-8659 of 2019] in the matter of the Employees’ Provident Fund Organisation and others versus Sunil Kumar B. and others, along with other tagged matters, held the requirement of the members to contribute at the rate of 1.16 per cent. of their salary to the extent such salary exceeds fifteen thousand rupees per month as an additional contribution under the provisions of sub-paragraph (4) of paragraph 11 of the Employees’ Pension Scheme, 1995 to be ultra vires the provisions of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952); And whereas, the Hon’ble Supreme Court suspended the operation of the aforementioned part of the said Judgment for a period of six months and directed the authorities to make adjustments in the said Scheme; And whereas, accordingly, to comply with the said directions of the Hon’ble Supreme Court and since the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952) has been subsumed in the Code on Social Security, 2020 (36 of 2020), the Central Government has decided to bring into force the relevant provisions of the said Code; Now, therefore, in exercise of the powers conferred by sub-clause (i) of clause (b) of sub-section (1) of section 16 of the Code on Social Security, 2020 (36 of 2020), the Central Government hereby notifies the following, namely:- (i) in respect of members who have exercised joint option for contributing under the provisions of paragraph 11 of the Employees’ Pension Scheme, 1995 and who are found eligible, the employer’s contribution shall be nine and forty-ninth per cent. (9.49%) of the basic wages, dearness allowance and retaining allowance of each member by increasing one and sixteenth per cent. (1.16%) from the extant eight and one-third per cent. (8.33%); and (ii) the increased contribution shall be applicable to basic wages, dearness allowance and retaining allowance to the extent such basic wages, dearness allowance and retaining allowance exceed fifteen thousand rupees per month. 2. This notification shall be deemed to have come into force on the 1st day of September, 2014. [F. No. R-15011/02/2023-SS-II] VIBHA BHALLA, Jt. Secy. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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