Salary can’t be held back for not opting for NPS: Allahabad HC
The petitioner salary had been stopped because their employer, the Government of Uttar Pradesh, had made it mandatory to opt for NPS and register under PRAN, and they had not done so.
HIGHLIGHTS:
- UP government made NPS opt mandatory by an order.
- NPS is a voluntary option for subscribers to opt for.
- Department hold the salary for non-opting NPS.
- Employee challenged the order in Court.
- Justice Bhatia, directed the state, about the matter, till final decision.
Salary Can’t be Held Back for not Opting for NPS: Allahabad HC
The Uttar Pradesh government stopped the salaries of employees who joined after April 1, 2005, for not opting for NPS and not registering under the PRAN as mandated by regulation. The holding of salaries is illegal, according to the High Court. A petition was filed by the employees in the Allahabad High Court to challenge the order.
According to the Allahabad High Court, it is not possible for the Uttar Pradesh government to withhold the salary of its employees just because they had not subscribed to the National Pension System (NPS). All employees must subscribe to the NPS if they joined after April 1, 2005. For those employees who joined before this date, it was voluntary. Since the petitioners had not subscribed to NPS, their salary was held back by their department.
The petitioners had challenged the order, saying that NPS cannot be made compulsory and that their salaries cannot be held back simply because they had decided not to opt for the scheme.
The National Pension System (NPS) is a voluntary, defined contribution retirement savings scheme that allows its subscribers to make the best decisions about their future via systematic savings while they are in service.
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