The Employees’ Provident Fund Organization (EPFO) has fixed the maximum salary for the pension of employees at Rs 15,000 (Basic Salary).
There is great news for the employees of the private sector. Pension is going to increase soon. According to media reports, the Employees’ Provident Fund Organization (EPFO) has fixed the maximum salary of 15 thousand rupees (Basic Salary) for the pension of employees, so soon the Employees’ Provident Fund (EPF) will be given. There can be an increase of up to 300% in the pension (EPS) of lakhs of employees.
According to media reports, a decision of the Supreme Court can increase the pension (EPS) of lakhs of employees contributing to the Employees’ Provident Fund (EPF) by up to 300%. It is expected that soon a final decision will be taken in this matter. If this happens, then PF will be deducted on the maximum amount and pension can be more than 300 percent. That is, it can also be done at higher pay brackets, with this decision the employees will get many times more pension.
Let us tell you that in this case on September 1, 2014, while modifying the Employees’ Pension Scheme, the Government of India had issued a notification, which said that the limit of basic pay should not be fixed for deducting the amount of PF. This decision was strongly opposed by the private sector employees and then the PF department also approached the Supreme Court, at present the hearing in this matter is going on and the decision is expected soon.
Understand complete maths like this
- For example, at present the salary (Basic Salary + DA) of an employee is 20 thousand rupees. Calculating from the pension formula, it will be Rs.4000 (20,000X14)/70 = Rs.4000 and higher the salary, the more pension benefits he will get, such people can see a jump of up to 300% in their pension.
- If an employee is working from 1st June 2015 and wants to take pension after completing 14 years of service, then his pension will be calculated on 15 thousand rupees only. The formula for calculation of pension is- (Service History x 15,000/70), but, if the Supreme Court decides in favor of the employees, the pension of that employee will increase.
- Apart from this, suppose the job of an employee is 33 years and the basic salary is 50 thousand rupees. At present, the pension is calculated only on the maximum salary of 15 thousand rupees. Thus (Formula: 33 Years+2= 35/70×15,000) the pension is only Rs.7,500. After removing the pension limit, adding the pension according to the last salary, they will get a pension of 25000 thousand rupees, ie (33 years + 2 = 35/70 × 50,000 = 25000 rupees).
