If the limit of Rs 15000 on EPS is removed, then the amount of pension ( Employee Pension Scheme) will be doubled. At present , the hearing is going on in the Supreme Court, if it is decided, then there will be an increase in the pension of at least Rs 8571basic salary of Rs 20000
Employee Pension Scheme: Soon the limit on investment under EPS (Employee Pension Scheme) is expected to be removed. The hearing on this issue is going on in the Supreme Court these days. Due to which all the employees registered under EPS are waiting for the decision of the court. They hope that the court’s decision will be in their favor. And they will get benefit from it. Let us know what is the whole matter…
As we have just told that there is a limit of 15000 (15 thousand rupees) on pension under EPS (Employee Pension Scheme) . The case is going on in the Supreme Court to remove it. Actually the matter is that there are some rules related to the pension of the employees registered in EPS such that the maximum pensionable salary is limited to Rs 15000 per month. Which means that whatever the salary of the employee has been, his pension will be determined on the basis of Rs 15000 only . And the case is going on in the Supreme Court to remove this limit ( limit of Rs 15000 ).
The batch of hearing petitions filed by the Supreme Court on behalf of the Union of India and Employees’ Provident Fund Organization ( EPFO) was adjourned to August 12 . It was said in these petitions that the pension of the employees cannot be limited to Rs 15,000 . The hearing on this matter is going on since August 17 .
If the limit of Rs 15000 on EPS is removed , then the amount of pension will be doubled. At present , the hearing is going on in the Supreme Court , if it is decided, then there will be an increase in the pension of at least Rs 8571 on the basic salary of Rs 20000 .
Explain that the members of Provident Fund Organization also become members of EPS ( Employee Pension Update) . Under the Employee Pension Scheme, 12% of the salary from the employee’s account is PF and later the same amount goes to the employer’s account as well. The contribution of basic salary to EPS is 8.33% . In this, the limit of pensionable salary is 15000 . In such a situation, a maximum of Rs 1250 is deposited in the pension fund every month . If the same salary is Rs 10,000 , then only Rs 833 will be deposited.
When an employee starts working, he becomes a member of EPF and also gets the membership of EPS . 12 percent of the salary is deposited in the EPF by the employee and the same is put by the company on its behalf. Apart from this, 8.33 percent of salary also goes to EPS .
As the maximum pensionable salary for pension is Rs 15000 , which means that the maximum part of pension is Rs 1250 only. After this, on the retirement of the employee, the basis of calculation of his pension is Rs 15000 , according to which his pension becomes Rs 7500 per month only. Let us now understand how the employee’s pension is calculated ?
If an employee starts contributing to EPS before 1st September 2014 , then the maximum limit of monthly salary for contribution towards pension will be Rs 6500 . On the other hand , if that employee has started contributing to EPS after 1st September 2014 , then the maximum limit of his salary will be Rs 15 thousand. Let us now know how pension is calculated ?
Monthly Pension = (Pensionable Salary x Years of EPS Contribution) / 70
Here we assume that the employee has started contribution after 1st September 2014 . On this basis the pension contribution will be based on Rs.15000 . And if the employee has worked for 30 years, then according to that-
Monthly Pension = 15,000 X 30 / 7 = Rs 6428
For your information, let us tell you that if the employee’s service of 6 months or more than this, the service of the employee will be considered as 1 year. Whereas if it is less than this period then it will not be counted. For example, if an employee has worked for 12 years and 7 months, then this period will be considered as 13 years.
Whereas, if that employee has worked for 12 years and 5 months, then its count will be considered only for 12 years. Under the Pension Scheme , the minimum pension amount is Rs 1000 while the maximum pension amount is Rs 7500 .
- On the retirement of the employee, the maximum salary of pension is considered to be Rs 15000 , in such a situation, according to the rules of EPS , after retirement, the employee gets only Rs 7500 as pension.
- If the limit of 15000 from pension is abolished and basic salary is made 20 thousand, then the amount of pension will be more than 7500 i.e. 8,571 .
- The same salary of 25000 and 30000 will also increase , for this you can check the formula of EPS calculation = Monthly Pension = (Pensionable Salary x EPS Contribution) , but for this, the employer’s contribution to EPS will also have to be increased , so that retirement To get the amount of pension at the time.
- EPF member mandatory and minimum 10 years regular job.
- Option to take pension even after 50 years. For this you have to fill 10D form.
- Pension to the family on the death of the employee.
- If the service history is less than 10 years , then they will get the option to withdraw the pension amount at the age of 58 years
- The members of the Provident Fund Organization also become the members of the EPS.
