Two recent Supreme Court judgements on Provident Fund and Employee Pension Scheme (EPS) have generated a lot of interest due their far-reaching impact on the Industry. Over the past few years, there have been a number of High Court rulings on coverage of allowances under basic wages for calculation of Provident Fund contributions and these High Court rulings were challenged before the Supreme Court. Five such High Court rulings were clubbed together and heard by the Supreme Court.
The Supreme Court decision on what constitutes wages for the purpose of Provident Fund (PF) contributions and several questions regarding the category of employees it impacts, whether it will be retrospective or Prospective, Whether it reduces you take home pay, What will be consequences of change in employment, will employers have to consider reviewing wage structures for their workforce generally or for a specific employee category etc… Have been raised.
In order to answer the above questions and to evaluate Pros and Cons of the judgements on Compensation & Benefits of employees, HYSEA organised an interactive session with Labor Laws expert and Advocate, Mr. Radhakrishna Moorthy. The session was attended by more than 85+ associates from 60 member companies.