EXTRA 1.16 PERCENT CONTRIBUTION ADDED TOWARDS HIGHER PENSION FROM EMPLOYERS KITTY ,AS PER RULING GIVEN BY THE SUPREME COURT.

As per report of the labour Ministry released from New Delhi today on 4-5-2023 ,after extending the deadline for submitting the joint option fire hire pensionary benefits,till June 26 ,the employers contribution for members who have signed up for higher pension and are found eligible for it will be 9.49 percent up from the earlier 8.33 percent.Since the notification comes in to the retrospective effect from September 1 ,2014 , the cut -off date for the Supreme court ruling in this regard,this means that the additional 1.16 percent contribution from the employers 12 percent contribution into PF will be drawn retrospectively from the employees PF corpus . This will mean a depletion of a subscriber's PF kitty when added to the arrears one if you opt for the higher pensionary benefits.In a notification issued on Wednesday on 3-5-2023 the Ministry said this was in compliance with the November 4, 2022 judgement of the Supreme court,which had suspended a decision on the replacement mechanism for the 1.16 percent contribution for six months and ordered necessary adjustments to the pension plan .