Typically, employers contribute to an employee’s EPS account based on a wage ceiling of Rs 15,000. However, in many cases, employees can actually contribute according to their real basic salary to get a higher Employees’ Pension Scheme (EPS) pension when they retire or exit the scheme.
This option for a higher pension became available after the Supreme Court ruled on November 4, 2022, permitting eligible employees who contributed based on their real basic salaries exceeding the wage ceiling to opt for a higher EPS pension.
