EPFO Subscribers Good News: The Supreme Court has given a big relief to the EPFO subscribers, due to which now the pension of millions of employees contributing to the Employee Pension Scheme (Employee Pension Scheme) can increase up to 300 percent in one stroke! EPFO has fixed the maximum salary of Rs 15000 for the EPS pension of the employees. Very soon the Supreme Court can abolish this salary limit of Employees’ Provident Fund Organisation.
EPFO Subscribers Good News
EPFO Subscribers Good News
Pension can also be calculated on the last salary of the employees in the Employee Pension Scheme. With this decision of EPFO, the central employees will get the benefit of EPS Pension manifold. Let us tell you that to get pension, it is necessary to contribute to EPF for 10 years, while on completion of 20 years of service, the employees get the benefit of 2 years of weightage. If an employee wants to take pension after completing 14 years of service, then in the Employees’ Provident Fund Organisation, the pension will be calculated on the basis of Rs 15000.
EPFO Subscribers Good News: Increase in pension will give so much benefit
According to the old formula of EPS, on completion of 14 years from June 2, 2030, employees will get the benefit of pension of about Rs 3000. If the Supreme Court gives a decision in favor of the employees, then the pension of the same employee will increase. If Employees’ Provident Fund Organization subscriber’s job is of 30 years and the basic salary of those employees is Rs.50000. Under the existing system of Employee Pension Scheme, pension was calculated only on the maximum salary of Rs 15,000. In this way only 7500 is available in pension. By removing the limit of pension and adding pension according to the last salary, they will get the benefit of pension of Rs 25000.
Pension will increase by 333 percent: Employees’ Provident Fund Organization
Let us tell you that if an employee contributes to the Employee Pension Scheme (Employee Pension Scheme) for 20 consecutive years or more in the Employees’ Provident Fund Organization, then 2 more years are added to his service. In this way, on completion of 33 years of service, the EPS pension has been calculated for 35 years. In such a situation, there can be an increase of 333 percent in the salary of that employee.
Decision in Supreme Court regarding EPS Pension
The EPS Pension Scheme (EPS Pension Scheme) was implemented by the Central Government by issuing a notification from 1 September 2014. This Employee Pension Scheme was opposed by private sector employees, it was heard in the Kerala High Court in the year 2018. All employee benefits are covered. EPS, EPF and Miscellaneous Provisions Act. The maximum salary for the calculation of EPS pension has been fixed at Rs 15,000. However, before the revision made by the Central Government on 1st September 2014, this amount was Rs 6500.
Employee Pension Scheme Update
Employees’ Provident Fund Organisation: Every month an amount from the subscriber’s salary is deposited in the PPF account. Out of this, 8.33% amount goes to pension. Along with this, to get pension under EPS-95 Pension Scheme, the employee will have to complete at least 10 years of service. The retirement age under this Employee Pension Scheme is 58 years.
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