EPS Pension Scheme 2023 Big Update: Private sector employees can get great relief. The pension of a salaried person who contributes to the Employees’ Provident Fund Organization can increase manifold. EPFO board can take a decision on this soon. It is believed that there can be an increase of 333% in the pension under the Employees Pension Scheme-95.
EPS Pension Scheme 2023 Big Update
The maximum pension in the Employee Pension Scheme is fixed at Rs 15,000. After this it is sealed. In the Employees’ Provident Fund Organisation, that means even if the basic salary is more than Rs 15,000 per month, your pension will be calculated on a maximum salary of Rs 15,000.
EPS pension can increase manifold
The sealing of the pension case in the Employee Pension Scheme is pending with the Supreme Court bench. It has been heard on many levels. The union is constantly demanding that the pension limit be abolished. If the decision is in favor of the employees, then the pension can also be calculated on the last pay i.e. higher pay bracket. With this decision, it is possible to increase the pension of the employees by up to 300%. The condition of getting pension under EPS is that it is necessary to contribute to Employees’ Provident Fund Organization for 10 years. Whereas, after completing 20 years of service, a weightage of 2 years is given. Removing the roof would make a big difference.
How your pension will increase in EPS-95
According to the existing rules, if an Employees’ Provident Fund Organization employee is working from June 1, 2015, and if he wants to take pension after completing 14 years of service, then his pension will be calculated at Rs 15,000 only. ! Whether the employee is in a basic salary of Rs.20,000 or Rs.30,000. According to the old formula, on completion of 14 years, the employee will get a pension of about Rs 3000 from June 2, 2030. The formula for calculation of EPS pension is (service history x15,000/70). But, if the pension limit is abolished, then the pension will increase in the Employee Pension Scheme of the same employee.
Example No. 1: EPS Pension Scheme
Suppose the salary (Basic Salary + DA) of an employee in Employees’ Provident Fund Organization is 20 thousand rupees. Calculating from the pension formula, his pension will be Rs 4000 (20,000X14)/70 = Rs 4000. Similarly, the higher the salary, the more he will get the benefit of Employee Pension Scheme pension. There can be a jump of 300% in the EPF pension of such people.
EPS Pension Scheme : Example No-2
Suppose an employee’s job in Employees’ Provident Fund Organization is 33 years. His last basic salary is 50 thousand rupees. Under the existing system, EPS pension was calculated only on a maximum salary of Rs 15,000. Thus (Formula: 33 years+2= 35/70×15,000) the pension would have been Rs 7,500 only. This is the maximum pension in the current system. But, after removing the limit of Employee Pension Scheme pension, they will get a pension of 25000 thousand rupees if the pension is added according to the last salary. Means (33 years+2= 35/70×50,000=Rs 25000).
Employees’ Provident Fund Organisation: 333 percent salary will increase
Explain that according to the rules of the Employees’ Provident Fund Organization, if an employee contributes to EPF continuously for 20 years or more, then two more years are added to his service. Thus 33 years of service was completed, but pension was calculated for 35 years. In such a situation, there can be an increase of 333 percent in the salary of that employee. There is complete information about the Employee Pension Scheme!
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