Skip to main content
main content, press tab to continue

Employee Pension Scheme (EPS) — Supreme Court judgement and implications for employers in India

March 13, 2023

Webinar focused on potential implications of the Supreme Court judgement around EPS on employers and employees.

On-demand webinar now available

On 4 November 2022, the Supreme Court of India passed a landmark judgement which upholds the right of certain categories of employees to opt for higher pension by contributing to the Employees’ Pension Scheme (EPS) on higher/ uncapped salary. As things stand today, EPS benefits and contributions are capped to a statutory threshold of INR 15,000 per month, which currently translates to a relatively low and insignificant pension. However, the recent judgement offers eligible employees an option to contribute on uncapped salary, and subsequently earn higher pension. The higher EPS contribution will be redirected from the employer share of EPF contribution, which will lead to a lower EPF (lump sum) accumulation.

In this connection, the EPFO has issued a circular on 20 February 2023, where they have instructed field officers to prepare for the implementation of the directions of the Supreme Court judgement. This is a complicated topic, and while more information is awaited from EPFO, it is important that employers understand the implications of this option, enabling them to communicate and successfully implement this option.

Given this background, WTW conducted a webinar on 1 March 2023 which covered:

  • Background and summary of the key facts of the judgement, including different categories of employees impacted
  • Potential implications of the judgement on employers and employees
  • Financial illustrations and projections to determine whether employees may benefit from this option
  • High-level overview of a pension calculator developed by WTW
  • Role of employers and next steps for implementation, including operational aspects and communication plan

The webinar was led by Ritobrata Sarkar, Head of Retirement, Jehangir Damkevala, Associate Director – Retirement and Divya Dadlani, Consulting Actuary from WTW.

Please fill the form below to watch the webinar replay and download presentation slides.

Access the on-demand webinar and presentation 
Related content tags, list of links Webcast Retirement India
Contact us