Government employees can now get interest due to delay in getting salary and pension. In fact, the Supreme Court in one of its orders said that government employees are entitled to their salary and pension. If the government delays the payment of salaries and pensions of employees, the government should pay them salaries and pensions with a reasonable interest rate. A bench of Justices DY Chandrachud and MR Shah in the Supreme Court upheld the judgment given by the Andhra Pradesh High Court in this case.
The Andhra Pradesh High Court, hearing a PIL by a retired district judge, ordered the state government employees to pay interest at the rate of 12% per annum for the delay in the salary of March-April 2020. The Andhra Pradesh government reached the Supreme Court against this decision, saying that it had paid the arrears of salary and pension in two installments. But the order to add 12% interest with it is not correct, it should be removed.
The state government said that it had no wrong motive behind the delay in payment of salaries and pensions. They could not be paid due to the economic problem during Corona. The state government cannot be punished for this. But the Supreme Court disagreed with this argument, saying that salaries and pensions are given to employees in return for their service.
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The court said that government employees have the right to get it. It is not unreasonable to charge interest on delayed payments if their rights are violated. However, the Supreme Court ordered the state government to pay interest at the rate of 6% within 1 month, while deducting 12% interest.
Supreme Court’s ban on pension to salary ratio
will have to wait for now to know how much the Employees will get Provident Fund Pension (EPF Pension). In another case, the Supreme Court has on Thursday put a stay on the decision to give provident fund pension in the ratio of salary. On January 31, 2021, the Supreme Court had decided to reconsider, withdrawing its decision of 2019, under which the way of giving more pension was opened by eliminating the maximum pensionable salary limit of Rs 15,000 per month.
A bench of Justice UU Lalit and Justice KM Joseph has stayed the contempt proceedings going on against the Central Government and the Employees Provident Fund Organization (EPFO) in the Kerala, Delhi, and Rajasthan High Courts
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