At present, the minimum basic salary formula is applied to decide the pension of the employees. Its loss is to such employees whose basic salary is much more than this minimum limit. If the Supreme Court allows this change, then the pension of employees can increase up to three times.
New Delhi. There may be a big increase in the minimum pension of the employees soon. A decision of the Supreme Court may increase the pension (EPS) of lakhs of employees contributing to the Employees’ Provident Fund (EPF). Till now, the basic salary is fixed for calculating pension, which is the minimum monthly basic salary of Rs 15,000.
Actually, even if the basic salary of an employee is more than Rs 15,000, then the pension is calculated only on Rs 15,000. If this obstacle is removed, then the mathematics of fixing pension will also change. That is, if someone has a basic salary of Rs 20,000 and pension is calculated on this, then the minimum pension will increase by about Rs 1,000 and it will reach Rs 8,571.
In this way, understand the calculation of pension,
even if your basic salary is more than Rs 15,000, then PF on salary will be calculated only at Rs 15,000. That is, if the basic salary of an employee is Rs 40,000 and he wants to calculate his pension at 40,000 only, then he cannot, because it is not allowed in the current law. If the Supreme Court removes this limit of salary, then the employees will get many times more pension.
This is the whole matter
The Employees’ Pension Revision Scheme was implemented by the Central Government on 1 September 2014 through a notification. This was opposed by the private sector employees. On this EPFO filed an SLP in the Supreme Court. On 1 April 2019, while hearing the SLP of EPFO, the Supreme Court said that there is no justification for fixing the salary of pension to 15 thousand rupees. The matter is being heard continuously since August 17 and the decision is yet to come.
Your pension can increase so much
Suppose the salary (basic salary and DA) of an employee is 20 thousand rupees. According to the changed pension formula, his pension will increase from Rs 7,500 to Rs 8,571. You can check the EPS calculation with the formula = Monthly Pension = (Pensionable Salary x EPS Contribution). In this way, there can be a direct jump of 300% in the pension.
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