The government last increased the wage ceiling limit in 2014. Then it was increased from Rs 65000 to Rs 15,000. If the government increases the wage ceiling limit, then the contribution of the employee and employer in retirement and pension savings will increase.

Contribution to EPS will increase every month

Experts say that increasing the wage ceiling limit will increase the contribution to EPS . This will increase the pension received by the employee after retirement. Every month, the employee and the employer have to contribute equal amount in EPF. 12% of the employee’s basic salary is deposited in EPF. The employer also contributes 12% of the basic salary. Out of this 12%, 8.33% is deposited in the EPS account. The rest is deposited in the EPF account.

Calculation based on wage ceiling limit of Rs 15,000

Currently, 8.33 percent of Rs 15,000 is deposited in the employee’s pension account (EPS) every month. When the wage ceiling limit increases to Rs 21,000, 8.33 percent of this amount will be deposited in his EPS account. This means that Rs 1,749 will be deposited in the employee’s EPS account every month. Currently, 8.33 percent of Rs 15,000, i.e. Rs 1,250 is deposited in the employee’s EPS account every month.

Out of the employer’s 12% contribution, 8.33% goes to EPS

Experts say that if the government increases the wage ceiling limit, then the pension amount of the employee will increase. The reason for this is that after retirement, the employee gets the entire amount deposited in EPF in lump sum. But, he gets pension every month on the money deposited in EPS. By increasing the wage ceiling limit, more money will be deposited in his EPS account every month.

Change in wage ceiling limit 10 years ago

This will result in a good amount of money being deposited in his EPS account till retirement. This will also increase his pension every month. Experts say that the government had revised the wage ceiling limit 10 years ago. Meanwhile, inflation and income have increased. Therefore, the government should make changes in it.

Related Articles:-

PM Awas Yojana 2.0: How to apply online, required documents, and more….

Air India’s new offer: 10% off on fares and 10kg extra baggage for students

Bank Holiday Tomorrow : All banks will remain closed tomorrow on Thursday. know why RBI has declared holiday

The post PF contribution: Govt can increase the contribution limit of EPF, EPS to Rs 21000, Details Here first appeared on Rightsofemployees.com.

EPS Pensioners: There is great news for pensioners receiving pension under Employee Pension Scheme. From January 1, 2025, EPS pensioners can get pension from any branch of any bank in any corner of the country. Union Minister of Labour and Employment Mansukh Mandaviya has given this information. This decision will benefit around 78 lakh EPS pensioners.

78 lakh EPS pensioners benefited

The Ministry of Labor and Employment, while giving information about this decision in a press release, said that Labor and Employment Minister and Chairman of Central Board of Trustees, EPF Mansukh Mandaviya has approved the proposal of Centralized Pension Payment System for the Employees Pension Scheme 1995. With the creation of a centralized system at the national level through the Centralized Pension Payment System, pension can be given to pensioners from any branch of any bank in any corner of India. The centralized pension payment system will benefit 78 lakh EPS pensioners of EPFO.

Pensioners’ problems will be reduced

On this historic decision, the Labor and Employment Minister said, approval of the Centralized Pension Payment System is going to prove to be an important milestone in the modernization of EPFO. Paying pension to pensioners from any branch of any bank anywhere in the country will help solve the problems of pensioners which they were facing for a long time.

Also Read- EPS 95: Can pension be received even before the age of 58, know what are the rules of EPFO

There will be no need for pension payment order

The centralized pension payment system will help in pension disbursement in the country and for this there will be no need to transfer pension payment orders. Earlier, pension payment orders had to be issued when pensioners moved from one place to another, or changed banks or branches. Pensioners who go to their hometowns after retirement will get great relief from this. In the next phase, the centralized pension payment system will be linked with the Aadhaar-based payment system.

Related Articles:-

Income Tax Refund did not come after filing ITR, know step by step what to do now?

PNB changed the service charge for 5 services, Check new charges

Pune Metro: Names of these stations will be changed in the next 10-15 days, check details here

The post EPS Pensioners: Good news! You will be able to take pension from any bank anywhere in the country from January 1, 2025, know update… first appeared on Rightsofemployees.com.

The central government on Friday made changes in the Employees’ Pension Scheme (EPS), 1995. Now even members who have contributed for less than 6 months will be able to withdraw money. This change will benefit lakhs of EPS employees. In fact, every year lakhs of EPS members leave the scheme before completing the 10 years of contributory service required for pension. In this, the number of people leaving the scheme within 6 months is high.

Under EPS, those who left the scheme before 10 years were given the facility of withdrawal, but those who left the scheme before 6 months were not given the facility of withdrawal on their contribution. However, now the government has given a big relief by changing this rule. The new amendment will benefit more than 7 lakh EPS members every year, who leave the scheme after less than 6 months of contributory service.

Also Read: Income Tax Rules: How to switch from new tax regime to old tax regime? Know this easy way

The government has also made changes in this rule.

To make the scheme better, the government has also made amendments in the EPS details. From now on, the withdrawal benefit will depend on how many months the member has served and how much EPS contribution has been made on the salary. This rule will make withdrawal easier. More than 23 lakh EPS members will benefit from this change.

What was the rule earlier?

Till now, the withdrawal benefit was calculated on the basis of the period of contributory service in completed years and the salary on which EPS contribution has been paid. Members were entitled to such withdrawal benefit only after completing 6 months or more of contributory service. As a result, members who left the scheme before contributing for 6 months or more did not get any withdrawal benefit.

7 lakh claims rejected

Due to the old rule, many claims were rejected as many members were exiting without less than 6 months of contributory service. According to the government notification, about 7 lakh claims of withdrawal benefit were rejected during the financial year 2023-24 due to less than 6 months of contributory service. Now these EPS members who have not attained the age of 58 years by 14.06.2024 will be entitled to withdrawal benefits.

What is EPS?

Often people get confused about EPS. Actually it is a pension scheme, which is managed by EPFO. Under this scheme, contribution has to be made for 10 years, then you become entitled to pension after retirement. Existing and new EPF members are included under this scheme.

Both the employer/company and the employee contribute equally to the EPF fund at 12% of the employee’s salary. However, the entire share of the employee’s contribution goes to EPF and 8.33% of the employer/company’s share goes to the Employees’ Pension Scheme (EPS) and 3.67% to EPF every month. Pension benefits will be given after completing at least 10 years of service and after retirement.

The post New update for lakhs of EPFO ​​members… Government changed this big rule regarding pension first appeared on Rightsofemployees.com.

The government has changed the withdrawal rules of the Employees Pension Scheme, 1995. After this amendment, the members of the Employees Pension Scheme with less than 6 months of contributory service will also be able to withdraw money from the EPS account. This amendment will benefit more than 7 lakh members of the Employees Pension Scheme every year who leave the scheme after less than 6 months of contributory service.

According to a press release from the Press Information Bureau (PIB), the central government has also revised Table D. From now on, the withdrawal benefit will depend on how many months the member has served and how much EPS contribution has been made on the salary. This will help in rationalizing the withdrawal benefit of the members. More than 23 lakh EPS members will benefit from this amendment. The Ministry of Labor said that there are lakhs of such EPS 95 scheme members in the country who leave the scheme midway despite the rule of continuously contributing to the scheme for 10 years to get pension.

Six months of contribution was necessary to withdraw money.

As per the rules till now, the calculation of withdrawal benefit is based on the years completed in service and the salary on which contribution has been made for EPS. Only those members who contributed for 6 months or more could avail this withdrawal benefit. In such a situation, those members who left the scheme after contributing for less than six months did not get any withdrawal benefit. Due to this, the claim applications of many people were rejected.

7 lakh claims rejected

According to the Ministry of Labor, 7 lakh withdrawal claim applications were rejected in 2023-24 due to the rule of contribution for more than six months. These were such applications in which contribution was made in the EPS 95 scheme for less than 6 months. But after this decision of the government, all those EPS members who have not attained the age of 58 years by June 14, 2024 will also be entitled to the benefit of withdrawal of money.

The post EPS Withdrawal Rules: Rules for withdrawing money from EPS changed, check rule immediately first appeared on Rightsofemployees.com.

Employees’ Provident Fund Organization (EPFO) provides pension to its shareholders. The amount of pension a shareholder will receive depends on the contribution and age of the shareholder. EPFO starts giving pension when a subscriber completes 58 years of age and has contributed to EPFO ​​for 10 years. But, if a subscriber takes pension from EPFO ​​at the age of 60 years instead of 58 years, then he gets more pension. If you start taking pension at the age of 60 instead of 58, then you will get 8 percent more money as pension than the normal pension amount.

EPS is a pension scheme run by EPFO. Every month, 12 percent of the employee’s basic salary + DA is deposited in the PF account. The employer’s contribution is also the same. Out of this, 8.33% amount goes to the employee’s pension fund (EPS Fund) and only the remaining 3.67% amount goes to the PF account. EPFO has explained about the rules related to pension in an X post.

Check out our informative video on member pension benefits provided by EPFO! 👇https://t.co/qPvJMabJXr #MemberPension #EPS95 #HumHaiNa #EPFOwithYou #EPF #EPFO #ईपीएफओ #ईपीएफ pic.twitter.com/AKqzYnX97H

— EPFO (@socialepfo) April 5, 2024

According to EPFO ​​rules, any employee who contributes to EPFO ​​and has completed 10 years of service, becomes eligible to receive pension. If the total period of employment is less than 10 years, then the amount deposited for pension can be withdrawn anytime in between. Employees who have completed service period of 10 years or more are given pension from EPFO ​​after retirement i.e. from the age of 58.

Why is higher pension given?

EPFO ​​provides the facility to take higher pension at the age of 60 to encourage the subscribers to contribute more. Shareholders can deposit money in EPFO ​​pension fund till the age of 60 years. EPFO subscriber can get pension even after turning 50 years of age and contributing for 10 years.

You will get less pension.

If your 10 years of service period has been completed and your age is between 50 years to 58 years, then only you can claim for early pension. But in this you get less pension. The earlier you withdraw the money before the age of 58, the pension you will get will be reduced by 4 percent for every year. Suppose a person withdraws monthly pension at the age of 56, then he will get only 92 percent (100% – 2×4) of the basic pension amount.

If you are below 50 years of age,

if you have completed 10 years of service and your age is below 50 years, then you cannot claim pension. In such a situation, after leaving the job, you will get only the funds deposited in EPF. Pension will be available from the age of 58 years.

New Visa Rules: This country has tightened the visa rules, now it will be difficult to get a job abroad, know the details here

The post EPFO Pension: If you take pension at the age of 60 instead of 58, you will get more money, know why? first appeared on Rightsofemployees.com.

Actually, the rule of contribution in EPFO ​​is clear that 12 percent of the basic salary of the employee will go to EPFO, the same amount will be contributed by the employer. Now, out of the employer’s share, 8.33 per cent is for pension share and 3.67 per cent for provident fund. But no matter how much the basic salary increases, the pension share does not go beyond Rs.1250.

The capping rule on pension share came into force on 1st September, 2014. Many employees opposed this. The matter reached the court. The Supreme Court did not remove the cap, but gave an option to the employees who had joined EPFO ​​till September 1, 2014, to claim their entire pension share i.e. 8.33 per cent pension share.

How much EPS is deducted now?

If you have ever checked your passbook on EPFO, then you must have seen that there is also a column of pension share in it. In that column, either Rs 1250 is entered or it is less than that. The rule is that 8.33 percent of the share that goes to EPFO ​​from the employer’s side goes to pension and 3.67 percent to EPFO. But there is also a default rule that pension share will not be given more than Rs.1250.

However, employees who had joined EPFO ​​on the date of September 1, 2014, have the option to claim the entire 8.33 per cent of their pension share. Means, instead of only Rs.1250, as much as his pension share is actually made, he can include that much in his pension share. Due to this, the pension which is received on retirement, can get more benefit.

For example, if the basic salary of an employee is Rs 1 lakh, then his EPFO ​​contribution will be Rs 12,000. His company will put the same amount in EPFO. By law, the pension share becomes 8330, but the rule is that only 1250 will go to the pension. The rest will go to EPF. But if you choose the option of higher pension, then you can put the entire Rs 8330 in the pension scheme.

How to apply?

If you are eligible for the Higher Pension Scheme and want to apply for it, then you have to apply by visiting the EPFO ​​portal. Necessary documents have to be given. In UAN, just go to the e-Sewa portal and go to the member interface and apply.

After the application is submitted, verification will be sought from the employer of the employee. EPFO officers will verify the application, once everything is correct, the process of transferring the dues will start. If there is any discrepancy in the forms, the employee and his employer will be given one month to rectify it.

The post Higher Pension Scheme: You have only one day to increase your pension, apply immediately first appeared on Rightsofemployees.com.

EPFO has issued a circular saying that higher pension will be calculated for employees opting for higher pension on the basis of actual salary under EPS. According to the circular, the formula for higher pension calculation will be different for those who retire before September 1, 2014 and those who retire after this date.

Pension calculation for those retiring before 1st September 2014

As per EPFO ​​If an eligible applicant’s pension (EPS) started before 1st September 2014 then higher pension will be calculated during the contribution period during 12 months preceding the date of retirement Will be based on the average monthly salary received.

Pension calculation for those retiring on or after 1st September, 2014
For those retiring on or after 1st September, 2014 higher considering the average pay drawn during the contribution period of service in the period of 60 months preceding the date of retirement EPS pension will be calculated.

Why is 1st September 2014 important?

It is important to note that the government had revised the pension calculation formula in September 2014. The average salary during the 12 months preceding the date of retirement up to 31st August 2014 was taken into account. However, from September 1, 2014, the government revised it to 60 months. As a result of this change, the pension of those who retired on or after this date was reduced.

Average salary is the basic salary of an employee. However, for those opting for higher EPS pension, the pay used for calculation of higher pension will be full actual pay (including allowances etc.) instead of just basic pay.

Understand pension calculation with example

• Assume you have joined the EPS scheme in October 2008 and your retirement is in September 2033. Here the service period is 25 years (September 2033-October 2008). The average salary for the purpose of pension calculation will be calculated on the basis of your average salary for the last 5 years (60 months).
• If you had retired on or before 31st August 2014, then the average salary for higher EPS pension will be calculated on the average salary of the last year of service.

The post EPS Pension: EPFO ​​gave big relief to higher pension applicants, released pension calculation method first appeared on Rightsofemployees.com.

The Employees’ Provident Fund Organization (EPFO) has extended the deadline several times for opting for higher pension under the Employees’ Pension Scheme (EPS), and now it is very close. Now EPFO ​​has told how the calculation of higher pension will be done. Let’s try to understand it…

The Ministry of Labor had told this thing

Earlier last month, the Ministry of Labor had also issued a clarification regarding the calculation of higher pension. The Labor Ministry had said that out of the total 12 per cent employer’s contribution to PF, an additional contribution of 1.16 per cent would be used to calculate the higher pension, which would be in line with the Supreme Court’s November 4, 2022 decision. Along with this, the Ministry of Labor had also told that this step to reduce the burden on the subscribers of the Employees Pension Scheme will be retrospective, that is, this decision will not be applicable from the day of its arrival, but from the back.

This is how pension will be calculated

Now EPFO ​​has explained this in detail. EPFO has said that for those who retire before September 1, 2014, the pension will be calculated on the basis of average monthly salary up to 12 months before the date of retirement or exit from the pension fund. On the other hand, for those who will retire after this date, the calculation will be done on the basis of average monthly salary of 60 months before retirement.

only so many days left

The deadline for opting for higher pension was ending on 03 May. EPFO had extended it till 26 June 2023. Its deadline was extended for the second time. First of all, in an order given on 4 November 2022, the Supreme Court had fixed the deadline till 3 March in this regard. EPFO had then extended the deadline till May 3 to opt for higher pension. Now its deadline is ending on 26 June.

Money will go to pension fund from here

The Ministry had told that along with the Employees’ Provident Fund and Other Provisions Act, it has been told in the Social Security Code that contribution cannot be taken from the employees for the Pension Fund. Keeping this in mind, it has been decided that an additional 1.16 per cent will be taken from the 12 per cent contribution of the employers towards the Pension Fund, which is going to the Provident Fund.

In hand salary will not be affected

Let us tell you that in EPS the employee does not make any contribution on his behalf. Out of the total 12 per cent contribution made by the company, only 8.33 per cent goes to EPS. Whatever amount is more than this in the contribution of the company, it goes to EPF. The Ministry of Labor has clarified that the increased contribution to EPS will also go from the company’s share, which means that there will be no impact on take home salary or in hand salary even if you opt for higher pension.

In this case there will be loss

Although it also has its disadvantages. If you choose the option of higher pension, then the amount deposited in PF by the company will be less, which will affect your PF fund. Employees get the benefit of compound interest in PF. Now since part of PF will go to EPS, the benefit of compounding will also reduce. Similarly, the lump sum amount that is received from PF on retirement or already leaving the job, this amount will also be affected if the option of higher pension is selected.

The post Higher EPS Pension: EPFO ​​issued circular for pension calculation first appeared on Rightsofemployees.com.

Subscribers or pensioners opting for higher pension will get three months to give their consent to utilize additional contributions or dues under the Employees’ Pension Scheme (EPS) run by the Employees’ Provident Fund Organization (EPFO).

Consumers will get four months to opt for higher pension

Earlier in November 2022, the Supreme Court had asked the government to give four months to the subscribers to opt for higher pension. EPFO had provided online facility to subscribers to submit joint option forms (with employers) to opt for higher pension by May 3, 2023. Later the deadline was extended till June 26, 2023.

How this extra high contribution will be put to use and paid. Members also did not know whether they would have the option to withdraw from the Higher Pension Scheme in case the additional payments were excessive.

Information will be given to the customers about the deposit amount with interest
The circular clarified that the additional expenditure will be decided by the field authorities and the cumulative amount along with interest will be informed to the subscribers who opt for higher pension. It added that pensioners/members may be given time up to 3 months to clear these dues and give consent for transfer of these dues (in the prescribed format).

The field officers will inform the pensioners or members about the additional arrears to be paid for opting for higher pension. Earlier this month, the Labor Ministry had also clarified that 1.1% of the basic pay for subscribers opting for higher pension.

It has been decided to withdraw an additional contribution of 1.16 per cent from the total 12 per cent contribution of the employers to the provident fund. The Ministry had pointed out that the spirit of the EPF and MP Act as well as the Code (Social Security Code) do not envisage employees’ contribution to the Pension Fund. At present, the government pays 1.16 per cent (threshold basic pay) of basic pay up to Rs 15,000 as subsidy for contribution to the Employees’ Pension Scheme (EPS).

Employers contribute 12 per cent of basic salary to social security schemes run by EPFO. It has been decided to withdraw 16 percent additional contribution. The Ministry had pointed out that the spirit of the EPF and MP Act as well as the Code (Social Security Code) do not envisage employees’ contribution to the Pension Fund. At present, the government pays 1.16 per cent (threshold basic pay) of basic pay up to Rs 15,000 as subsidy for contribution to the Employees’ Pension Scheme (EPS).

Employers contribute 12 per cent of basic salary to social security schemes run by EPFO. It has been decided to withdraw 16 percent additional contribution. The Ministry had pointed out that the spirit of the EPF and MP Act as well as the Code (Social Security Code) do not envisage employees’ contribution to the Pension Fund.

[web_stories title=”true” excerpt=”false” author=”false” date=”false” archive_link=”false” archive_link_label=”” circle_size=”150″ sharp_corners=”false” image_alignment=”left” number_of_columns=”1″ number_of_stories=”4″ order=”DESC” orderby=”post_title” view=”carousel” /]

At present, the government pays 1.16 per cent (threshold basic pay) of basic pay up to Rs 15,000 as subsidy for contribution to the Employees’ Pension Scheme (EPS). Employers contribute 12 per cent of basic salary to social security schemes run by EPFO.

Those with more than 15 thousand salary will not have to contribute additional 1.16 percent

Of the 12 per cent contributed by employers, 8.33 per cent goes to EPS and the remaining 3.67 per cent is deposited in Employees’ Provident Fund. Now EPFO ​​members who are opting to contribute on their actual basic salary and whose salary exceeds the limit of Rs 15,000 per month, will not have to contribute this additional 1.16 per cent towards EPS. The ministry had said that this provision is retrospective in nature in line with the directions given by the Supreme Court.

While implementing, issued two notifications on May 3, 2023. The ministry had said that with the issuance of the notification, all the directions of the Supreme Court contained in the judgment dated November 4, 2022 have been complied with.

Contrary to the provisions of the Provisions Act, the revised scheme had considered the need to contribute at the rate of 1.16 per cent of his salary to the extent of salary exceeding Rs 15,000 per month as additional contribution. The apex court directed the authorities to make necessary adjustments in the scheme within a period of six months.

The post Government’s new formula for more pension than before, know what is special in the circular issued for EPS first appeared on Rightsofemployees.com.

What is the matter: Actually, in November 2022, the Supreme Court had given an order on higher pension. According to this, all the members of EPFO who are EPS members can now contribute for higher pension with conditions.

Who is eligible for higher pension?

1) Employees who were members under EPS prior to 1st September 2014, and continue to be members on or after that date

2) Employees and employers who paid the contribution on salary in excess of the standard salary limit of ₹5,000 or ₹6,500. Explain that EPS was started in 1995 and under this the higher pensionable basic salary was Rs 5,000 per month. It was later increased to Rs 6,500 and the basic salary to Rs 15,000 per month with effect from September 1, 2014.

As of now, the company’s pension contribution for the employee is 8.33% of Rs 15,000 i.e. Rs 1,250. Even if the basic salary is more than Rs 15,000, the employer’s contribution to the pension is calculated only on the basic salary of Rs 15,000.

How to apply

• EPFO’s https://unifiedportal-mem.epfindia.gov.in/memberinterface/ portal will have to go.
• Here you will see the Pension on Higher Salary tab. Click on this tab.
• In the next step, the option of “Joint Application Form” will also be given.
• After clicking it enter the details asked on the screen. This includes UAN, name, date of birth, Aadhaar number, mobile number linked to Aadhaar and captcha.
• Then click on “Get OTP”.
• One-time password will be sent to your Aadhaar linked mobile number.
• The application will be verified by the employer after its submission by the EPFO official.

If all the details are correct, the amount due will be calculated and an order will be passed to transfer the dues. In case of mismatch, the employer and employee will be informed by EPFO and they will be given a period of one month to complete the information.

Interest rate on PF deposits for FY23 is 8.15%

EPFO increased the interest rate on Employees’ Provident Fund to 8.15% for FY23. This is a slight increase compared to the previous year. Explain that EPF has the highest interest rate in the small savings category.

The post EPFO’s higher pension deadline is about to end, how to apply, know everything first appeared on Rightsofemployees.com.

This can be done through the Unified Members’ Portal of the retirement fund body Employees Provident Fund Organization ( EPFO ). The URL of the EPFO ​​Unified Members Portal was recently activated which clearly shows the deadline for opting for higher pension as May 3, 2023. Employees got a big relief due to the increase of this deadline. Let us know here what is the matter of higher pension and what was the benefit of increasing the deadline for choosing this option.

What is this matter of higher pension

Under the Employees’ Pension Scheme, the contribution is fixed according to the salary up to Rs 15,000, that is, even if the basic salary becomes Rs 50,000, the contribution in EPS will be fixed from Rs 15,000 only. Due to this, very less money can be deposited in EPS, that is, pension can be made. Now this limit has been increased.

Last year on November 4, 2022, the Supreme Court said that on September 1, 2014, EPFO ​​members can also take advantage of this higher pension option. For this, the court had asked EPFO ​​to give four months time i.e. till March 3, 2023. Keeping this decision of the Supreme Court in mind, the EPFO ​​issued a circular on February 20, 2023, making a provision to do it on the basis of basic salary of the employees instead of 8.33% deduction of the maximum salary of Rs 15,000.

What will be the benefit of increasing the deadline

There are a lot of documents to collect in order to opt for higher pension of EPFO. The deadline was March 3, 2023, so the employees who are eligible and want to opt for this option are in a scramble. However, now with the extension of the deadline, they have got more time to collect the documents.

what is the complete process

Eligible EPS member has to visit the nearest local EPFO ​​office and fill the application. Apart from this, necessary documents have to be submitted. The application form for validation should also contain a disclaimer as mandated in previous government notifications. The data of every application will be digital and a receipt number will be given to the applicants.

Whatever decision will be taken after examining the applications for higher pension, it will be informed to the applicants through e-mail or post and SMS. As per the EPFO ​​order, after filing the Joint Option Form and having any complaint regarding payment of due contribution, one can lodge a complaint on the grievance redressal portal EPFiGMS.

The post EPFO higher pension deadline Increased: EPFO’s big decision, extended deadline to apply for more pension first appeared on Rightsofemployees.com.

This is absolutely correct. It is good to get more pension, but what price will have to be paid for it, that too should be known. We are saying this because whatever pension you will get, it will be from your own money. Government or EPFO ​​or your employer company is not going to give any extra money. Understand it like this – even after opting, the same amount will go to the EPF account as it used to go earlier.

Out of that money, it will be possible to give higher pension only by putting less in your PF, and more in EPS (pension). It is clear from this simple thing that for more pension you will have to compromise with the huge lump sum amount that you can get in PF. So,

The Supreme Court has said that the employees who have opened EPF account before September 1, 2014, will be given the option of higher contribution towards higher pension. Ever since the EPFO ​​has released its guideline regarding higher pension, many doubts and questions are being raised among the employees regarding this.

EPFO has said that soon an online link will also be released for choosing higher pension. Through this, employees can opt for higher pension. However, in the previous news we have answered all those questions which may be in your mind. You can clear all your confusion by visiting this given link – Here , Experts say that PF account holders opting for higher pension may have to bear 5 major disadvantages.

1- The money of PF account will ‘fly away’

The biggest and first disadvantage of choosing the new option will be that the money deposited in your EPF account will be transferred to the Pension Fund. This will also end the benefit of compound interest on your PF account. Actually, under the rules of higher pension, a large amount of contribution made by the employer has to be put in the pension scheme. This means that a large part of the amount deposited till now in the PF account will be withdrawn and put in EPS.

2- No facility of lumpsum withdrawal

You do not get the option of lumpsum withdrawal in the Employees Pension Scheme (EPS). It gives your total accumulated amount in the form of pension. If you want, you can try your hand at other government pension schemes like National Pension System (NPS). Here you get market linked returns and you can also withdraw a lump sum amount. Apart from this, the investment made here gives you a rebate of Rs 1.5 lakh under 80C and a further tax rebate of Rs 50,000.

3- Full money of PF account will not be received

Under the current rules of PF, in case of any untoward incident, your nominee (wife-children) gets the entire money deposited in this account. But, in the case of EPS, in your absence, the wife will get only 50 per cent pension. This means that if you get Rs 20,000 as pension, then your wife will get 50 per cent ie Rs 10,000 only, while the children will get 25 per cent ie Rs 5,000 pension.

4- Cannot retire early

The biggest loss for those opting for higher pension in EPS will be that they will not get the option of early retirement. The benefit of EPS scheme is available only when the employee has retired after working till the age of 58 years or has completed 10 years of service.

5- More loss than less interest

In EPS scheme, you also get less interest. This means that the money you have deposited in this item, you will get less return on it. Instead, you get more interest on your PF account. At present, 8.10 percent annual interest is being received on the money deposited in PF.

The post EPFO Higher Pension: 5 major disadvantages of choosing the new option, low interest and… first appeared on Rightsofemployees.com.

Employees’ Provident Fund Organization (EPFO) has told on Monday that the process of applying for more pension under the Employees’ Pension Scheme (EPS) has started. The body managing the retirement fund told that members and their employers will be able to apply jointly for this.

Pension was increased from 6500 to 15 thousand

Let us tell you that in November 2022, the High Court had upheld the Employees Pension Scheme, 2014. Earlier, the EPS revision of August 22, 2014 increased the pensionable salary limit from Rs 6,500 per month to Rs 15,000 per month. Also, members and their employers were allowed to contribute 8.33 per cent of their actual salary to the EPS.

EPFO will give special facility

EPFO ​​in an office order has given information about handling of ‘Joint Option Form’ by its field offices. EPFO said that ‘a facility will be given, for which the URL (Unique Resource Location) will be told soon. After getting this, the Regional PF Commissioner will give information through notice boards and banners for wide public information.

Order issued

As per the order, every application will be registered, digitally logged and a receipt number will be given to the applicant. It further states that the Officer-in-Charge of the concerned Regional Provident Fund Office will scrutinize each case of joint option on higher pay. After this the decision will be informed to the applicant through e-mail/post and later through SMS. It has been said in the order that these instructions are being issued in compliance with the order dated November 4, 2022, of the Supreme Court.

The post EPFO Pension Increased: Order issued! The government has increased the pension! You also apply immediately first appeared on Rightsofemployees.com.

It will depend on many factors like current age, employment status, risk appetite, health status, cash flow requirement, taxes etc. This eligible employee should evaluate other options and then choose There has been a lot of discussion on the Supreme Court’s order related to more pension contribution. Is this good news for the members of Employees’ Pension Scheme ie EPS ? What is the significance of this decision?

Employees contribute about 12 per cent of their salary every month to the provident fund and the same amount is deposited by the employer. Out of the employer’s contribution, 8.33 per cent goes towards EPS. However, a wage ceiling (which is Rs 15,000 at present) remains in place for this purpose. In other words, the pension contribution per month does not exceed Rs 1,250.

Even though scheme employees have been given the option to contribute on higher wages to the EPS scheme , in practice not many employees have opted for it.

Increase in wage ceiling

In August 2014, when the notification was issued to increase the wage ceiling from Rs 6,500 to Rs 15,000 per month, some other changes were also made, which are as follows:

Those earning more than Rs 15,000 per month will not be eligible to become EPS members. The pensionable salary will be calculated on the average of the last 60 months’ salary to determine the pension, whereas the current system is the average of 12 months.

Existing members who are paying contribution on higher salary were given 6 months time to give a joint declaration confirming the option to contribute pension on higher salary.

If the joint declaration is not submitted, their contribution to EPS will be transferred to PF accounts and future EPS contribution will be capped at the wage ceiling. This notification was challenged in various courts and finally the Supreme Court gave its verdict on November 4, 2022.

The Supreme Court considered the challenges faced by the employees due to ambiguity in the provisions and ruled that the employees would have four months to opt for higher pension contribution.

EPFO was instructed to issue guidelines related to it within eight weeks. This opportunity was available to all employees who had become EPS members by September 1, 2014.

Higher pension contribution

The higher pension contribution will definitely make the employee eligible to get higher pension. This may sound like an attractive proposition as the pension will be based on the average of the last 60 months’ salary, while the contribution will be made at very low salary levels during the service period.

However, this is not the only factor that needs to be considered before making a decision. Why so? Simply because the funds going to EPS will be transferred from the PF account of the employees along with the interest.

An additional payment of 1.16 per cent from the salary will also be made as the difference from the PF contribution of the employees till a legal amendment is made to do away with this requirement. This would mean that now no one would be eligible to withdraw that portion outright.

Now the question arises whether EPS members should contribute to the EPS scheme on higher salary? It will depend on many factors like current age, employment status, risk appetite, health status, cash flow requirement, taxes etc. This eligible employee should assess the other options and then choose.

So how can an employer help? They can sensitize the employees and enable them to take informed decisions. Overall, there is still a long way to go.

The post Pension Contributions: Supreme Court approves more pension contribution, will the employees get any benefit? first appeared on Rightsofemployees.com.

However, the court has struck down the limit of Rs 15,000 monthly salary for joining the pension fund. Due to this, the workers whose monthly salary is more than Rs 15 thousand have got a big relief. The workers who have not yet joined the Employees’ Pension Scheme (EPS) scheme have been given an additional time of six months so that they can join it.

For this reason the court gave additional time of six months

A bench of Supreme Court Chief Justice UU Lalit, Justice Aniruddha Bose and Justice Sudhanshu Dhulia said that employees who have not exercised the option to join the pension scheme will have to do so within six months. According to the bench, the workers who could not join the scheme till the last date should be given one more chance as there was no clarity in the judgments given by the High Courts of Kerala, Rajasthan and Delhi in this matter.

The condition of additional contribution on the salary of more than 15 thousand rejected

Employees of most companies are covered under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. Under this, the workers contribute 12 per cent of their salary to the pension account and the company also contributes the same amount. Earlier this contribution was fixed according to the pensionable salary of Rs 6500, which was increased to Rs 15 thousand monthly through amendment in 2014.

However, if you contribute even if you have a salary of more than Rs 15,000, you would have to make an additional contribution of 1.16 per cent. Now the court has rejected this additional contribution. However, the court said that this part of the judgment will not be implemented for six months so that the rights can collect funds. The Employees’ Provident Fund Organization and the Center had challenged the decisions of the High Courts of Kerala, Rajasthan and Delhi that struck down the 2014 scheme.

The post Supreme Court’s big decision ! Rs 15,000 limit for pension contribution canceled, check details instantly first appeared on Rightsofemployees.com.

Private sector employees can get relief soon. With a decision, the pension (EPS) of lakhs of employees contributing to the Employees’ Provident Fund (EPF) can increase by 300% in one stroke.

The Employees’ Provident Fund Organization (EPFO) has fixed the maximum salary of Rs 15,000 (basic pay) for the pension of the employees. Meaning, even if your salary is more than Rs 15,000 per month, but your pension will be calculated only on the maximum salary of Rs 15,000.

One decision and pension can increase manifold- (One decision and pension can increase manifold)

Hearing is going on in the Supreme Court to eliminate this salary-limit of EPFO. Employee Pension (Employee Pension Scheme) can also be calculated on the last pay i.e. higher pay bracket. With this decision, the employees will get many times more pension.

Let us tell you, to get the pension, it is necessary to contribute to the Employees’ Provident Fund (EPF) for 10 years. At the same time, on completion of 20 years of service, a weightage of 2 years is given. If the Supreme Court decides to remove the limit, then how much difference will it make, let’s understand…

How to increase your pension – (How to increase your pension)

According to the current system, if an employee is working from June 1, 2015 and wants to take pension after completing 14 years of service, then his pension will be calculated at Rs 15,000, irrespective of the number of years for which he is working. Are. 20 thousand Rs. Be in the basic salary bracket 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 pension is- (Service Historyx15,000/70). But, if the Supreme Court decides in favor of the employees, then the pension of the same employee will increase.

Example number 1-(Example number 1)

Suppose the salary (Basic Salary + DA) of an employee is 20 thousand rupees. His pension will be Rs.4000 (20,000X14)/70 = Rs.4000 by calculating the pension formula. Similarly, higher the salary, higher will be the benefit of pension. There can be a jump of 300% in the pension of such people.

Example No.-2-(Example No.-2)

Suppose the job of an employee is 33 years. His last basic salary is 50 thousand rupees. Under the current system, pension was calculated on a maximum salary of Rs 15,000. Thus (formula: 33 years + 2 = 35/70×15,000) the pension would have been only Rs 7,500.

This is the maximum pension in the current system. But, after removing the pension limit, adding the pension according to the last salary, they will get a pension of 25000 thousand rupees. Means (33 years + 2 = 35/70×50,000 = Rs 25000).

Pension can increase up to 333%!-(Pension can increase up to 333%!)

Let us tell you that according to the rules of EPFO, if an employee contributes to the 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, the salary of that employee can increase by 333 percent.

What is the whole matter-(What is The Whole Matter)

The Employees’ Pension Revision Scheme, 2014 was implemented by the Central Government from 1st September 2014 by issuing a notification. This was opposed by the private sector employees and in the year 2018 it was heard in the Kerala High Court. All these employees were covered by the facilities of the EPF and Miscellaneous Provisions Act, 1952. Employees protested against EPFO’s rules, saying it ensures them less pension.

Because even if the salary is more than 15 thousand, but the calculation of pension has been fixed at the maximum salary of 15 thousand rupees. However, before the amendment made by the central government on September 1, 2014, the amount was Rs 6,500. Considering the EPFO’s rules to be unfair, the Kerala High Court had ruled while accepting the writ of the employees. On this, the EPFO ​​filed an SLP in the Supreme Court, which was rejected by the Supreme Court.

Decision came in 2019

The Supreme Court decided to hear its decision again. A Division Bench of Justice Surendra Mohan and Justice AM Babu, while hearing the SLP of EPFO ​​on 1st April 2019, observed – Employees, who are contributing on the basis of their actual salary after furnishing joint option with their employers, as deemed fit It is necessary. Huh,

They are deprived of pension scheme benefits without justification. There is no justification for fixing the pension salary at Rs 15,000. The bench said that 15 thousand monthly i.e. 500 rupees per day. It is common knowledge that even a daily wage earner gets more salary than this. So limiting the maximum salary for pension to Rs 15000 thousand will deprive most of the employees of good pension in old age. As far as the impact on pension funds is concerned,

Re-Hearing 

In January 2021, the Supreme Court reconsidered its 2019 decision and decided to hear the matter. A petition was filed against the order of the Kerala High Court on behalf of the Ministry of Labor and EPFO. The EPFO ​​is of the view that with this order the pension may increase up to 50 times (EPS upper limit). On August 25, a bench of Justice UU Lalit and Justice Ajay Rastogi, while hearing the matter, decided to refer the matter to a larger three-member bench. The case is still pending.

The post EPFO New Pension Scheme: Big News! Pension will increase from Rs 7500 to Rs 25000, see calculation here first appeared on Rightsofemployees.com.

In the 232nd meeting of the Central Board of Trustees (CBT), the apex body of the EPFO, it was recommended to the government to make some amendments in the EPS-95 scheme for retirement. Subscribers who have reached close should be allowed to withdraw the amount deposited in the pension fund.

Recommendation to give proportionate pension benefits

According to the statement of the Labor Ministry, the CBT has recommended to the government that members with less than six months of service period should be given the facility of withdrawal from their EPS account. Apart from this, the Board of Trustees has also recommended proportionate pension benefits to the members who have been part of the scheme for more than 34 years. This facility will help the pensioners to get more pension at the time of determination of retirement benefits.

The Labor Ministry said that the Board of Trustees of EPFO ​​has also approved a redemption policy for investment in Exchange Traded Fund (ETF) units. Apart from this, the 69th annual report prepared on the functioning of EPFO ​​for the financial year 2021-22 was also approved, which will be presented in the Parliament.

The post EPS-95 Scheme: Great news for PF account holders! The government made this change in the EPS; you also know first appeared on Rightsofemployees.com.

In such a situation, there can be an increase of 9% in the pension of the employees. The government is going to give a wonderful gift to the subscribers of the Pension Scheme (EPS) of EPFO ​​​​(EPFO). Now preparations are on to increase the minimum pension available in this scheme by 9 times. If this happens, now people associated with EPS can get 9-9 thousand rupees every month instead of 1-1 thousand.

According to the news, the Labor Ministry can take a decision in this regard in the meeting to be held in February. In the same meeting, there are speculations that a decision will be taken on the new Wage Code. It is being told that the main agenda of this important meeting is to increase the minimum pension under the Employees’ Pension Scheme.

Pensioners have been demanding for a long time that the minimum pension should be increased. Several rounds of discussion have already taken place in this regard. The Standing Committee of Parliament has also suggested in this regard. It is being told that the decision to increase the minimum pension is being taken on the basis of the recommendations of the committee.

The Standing Committee of Parliament had suggested this in March 2021. The committee had said that the minimum pension amount should be increased from the existing one thousand to three thousand. However, pensioners say that it should be increased to 9 thousand. This will happen only then the pensioners associated with EPS-95 will be able to get the benefit in the true sense.

There is also a suggestion that the minimum pension should be decided from the last salary of the person concerned. The minimum pension should be fixed on the basis of the last salary received by the employee just before retirement. This suggestion can also be considered in the meeting of the Labor Ministry going to be held in February.

The post Employees Pension Increased: Good news! Employees’ pension may increase by 9%, will get this much pension every month first appeared on Rightsofemployees.com.

Private sector employees can get relief soon. With a decision, the pension (EPS) of lakhs of employees contributing to the Employees’ Provident Fund (EPF) can increase by 300% in one stroke.

The Employees’ Provident Fund Organization (EPFO) has fixed the maximum salary of Rs 15,000 (basic pay) for the pension of the employees. Meaning, even if your salary is more than Rs 15,000 per month, but your pension will be calculated only on the maximum salary of Rs 15,000.

One decision and pension can increase manifold- (One decision and pension can increase manifold)

Hearing is going on in the Supreme Court to eliminate this salary-limit of EPFO. Employee Pension (Employee Pension Scheme) can also be calculated on the last pay i.e. higher pay bracket. With this decision, the employees will get many times more pension.

Let us tell you, to get the pension, it is necessary to contribute to the Employees’ Provident Fund (EPF) for 10 years. At the same time, on completion of 20 years of service, a weightage of 2 years is given. If the Supreme Court decides to remove the limit, then how much difference will it make, let’s understand…

How to increase your pension – (How to increase your pension)

According to the current system, if an employee is working from June 1, 2015 and wants to take pension after completing 14 years of service, then his pension will be calculated at Rs 15,000, irrespective of the number of years for which he is working. Are. 20 thousand Rs. Be in the basic salary bracket 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 pension is- (Service Historyx15,000/70). But, if the Supreme Court decides in favor of the employees, then the pension of the same employee will increase.

Example number 1-(Example number 1)

Suppose the salary (Basic Salary + DA) of an employee is 20 thousand rupees. His pension will be Rs.4000 (20,000X14)/70 = Rs.4000 by calculating the pension formula. Similarly, higher the salary, higher will be the benefit of pension. There can be a jump of 300% in the pension of such people.

Example No.-2-(Example No.-2)

Suppose the job of an employee is 33 years. His last basic salary is 50 thousand rupees. Under the current system, pension was calculated on a maximum salary of Rs 15,000. Thus (formula: 33 years + 2 = 35/70×15,000) the pension would have been only Rs 7,500.

This is the maximum pension in the current system. But, after removing the pension limit, adding the pension according to the last salary, they will get a pension of 25000 thousand rupees. Means (33 years + 2 = 35/70×50,000 = Rs 25000).

Pension can increase up to 333%!-(Pension can increase up to 333%!)

Let us tell you that according to the rules of EPFO, if an employee contributes to the 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, the salary of that employee can increase by 333 percent.

What is the whole matter-(What is The Whole Matter)

The Employees’ Pension Revision Scheme, 2014 was implemented by the Central Government from 1st September 2014 by issuing a notification. This was opposed by the private sector employees and in the year 2018 it was heard in the Kerala High Court. All these employees were covered by the facilities of the EPF and Miscellaneous Provisions Act, 1952. Employees protested against EPFO’s rules, saying it ensures them less pension.

Because even if the salary is more than 15 thousand, but the calculation of pension has been fixed at the maximum salary of 15 thousand rupees. However, before the amendment made by the central government on September 1, 2014, the amount was Rs 6,500. Considering the EPFO’s rules to be unfair, the Kerala High Court had ruled while accepting the writ of the employees. On this, the EPFO ​​filed an SLP in the Supreme Court, which was rejected by the Supreme Court.

Decision came in 2019

The Supreme Court decided to hear its decision again. A Division Bench of Justice Surendra Mohan and Justice AM Babu, while hearing the SLP of EPFO ​​on 1st April 2019, observed – Employees, who are contributing on the basis of their actual salary after furnishing joint option with their employers, as deemed fit It is necessary. Huh,

They are deprived of pension scheme benefits without justification. There is no justification for fixing the pension salary at Rs 15,000. The bench said that 15 thousand monthly i.e. 500 rupees per day. It is common knowledge that even a daily wage earner gets more salary than this. So limiting the maximum salary for pension to Rs 15000 thousand will deprive most of the employees of good pension in old age. As far as the impact on pension funds is concerned,

Re-Hearing 

In January 2021, the Supreme Court reconsidered its 2019 decision and decided to hear the matter. A petition was filed against the order of the Kerala High Court on behalf of the Ministry of Labor and EPFO. The EPFO ​​is of the view that with this order the pension may increase up to 50 times (EPS upper limit). On August 25, a bench of Justice UU Lalit and Justice Ajay Rastogi, while hearing the matter, decided to refer the matter to a larger three-member bench. The case is still pending.

The post EPFO Pension Plan: Big News! Pension will increase from Rs 7500 to Rs 25000, see details here first appeared on Rightsofemployees.com.

Although, it is difficult to say in whose favor the decision will be taken, but their arguments have been submitted from both the sides. Due to the lack of funds with the EPFO, this matter has been hanging for the last few years. It is expected that on the monthly capping of EPS pension of Rs 15000, the board of EPFO ​​will take a decision on CBT.

It can be included in the next meeting of CBT. The Supreme Court will give its verdict on the petitions of the Union of India and the Employees’ Provident Fund Organization (EPFO).

What are the rules regarding Employee Pension Scheme?

When an employee becomes a member in the Employee Provident Fund, he also becomes a member of the EPS-Employee pension scheme. Contribution of 12% of the basic salary of the employee goes to PF. Apart from the employee, the same part also goes to the employer’s account. But, a part of the contribution of the employer is deposited in the EPS ie Pension Fund. The contribution of basic salary is 8.33% in EPS. However, the maximum limit of pensionable salary is Rs 15,000. In such a situation, only a maximum of Rs 1250 can be deposited in the pension fund every month.

According to the pension rules on the maximum range, if the basic salary of an employee is Rs 15,000 or more, then Rs 1250 will be deposited in the pension fund. If the basic salary is 10 thousand rupees, then the contribution will be only 833 rupees. The calculation of pension on the retirement of the employee is also considered as the maximum salary of 15 thousand rupees only. In such a situation, after retirement, employees can get only Rs 7,500 as pension under EPS rule.

What will happen if the limit of 15,000 is removed?

According to EPFO’s Retired Enforcement Office Bhanu Pratap Sharma, if the limit of 15 thousand rupees is abolished from the pension, then more than Rs 7,500 can be got pension. But, for this, the contribution of the employer to the EPS will also have to be increased.

How is pension calculated in EPS?

Formula for EPS Calculation = Monthly Pension = (Pensionable Salary x Number of Years Contribution in EPS Account)/70.
If someone’s monthly salary (average of last 5 years’ salary) is Rs 15,000 and the duration of the job is 30 years, then he will get a pension of only Rs 6,828 per month.

How much pension will you get if the limit is removed?

If the limit of 15 thousand is removed and your salary is 30 thousand then the pension you will get according to the formula will be. (30,000 X 30) / 70 = Rs 12,857

What are the rules for pension withdrawal?

If you want to withdraw EPF amount, then you can withdraw the amount deposited in your account anytime. Whether your job is 6 months or 10 years. But, you may face some difficulty to withdraw the amount of pension. Because, there are many rules for this, which you should understand.

The post Employee pension scheme: Now after retirement you will get Rs. 12,000 pension, this formula will increase first appeared on Rightsofemployees.com.

However, this benefit will be available to those orphan children, whose parents were employed or both were employed and were EPS members. The Employees Provident Fund Organization (EPFO) has told about the benefits (EPS Benefits) to the orphan children under the EPS scheme.

What are the benefits under EPS?

• Orphan children will get 75 percent of the widow pension as pension.
• This amount will be at least Rs 750 per month.
• Each of the two children together will get a pension of Rs 750 per month.
• Under the scheme, orphan children will be given pension till the age of 25 years.
• If the children are suffering from any disability then they will be given pension for life.

Any payment to be made?

• For EPS, the company does not deduct any money from the employee’s salary.
• Some part of the company’s contribution is deposited in EPS.
• Under the new rule, those with basic salary up to Rs 15,000 will get this facility.
• 8.33 percent of the salary is deposited in EPS.
• On having a basic salary of Rs 15,000, the company deposits Rs 1,250 in EPS.

Just have to submit life certificate

Pensioners have to submit life certificate or digital life certificate for pension payment under the Employees’ Pension Scheme-1995 (EPS-95). Every year pensioners are required to submit life certificate or life certificate. Due to this there is no obstacle in getting pension.

The post EPS-95 Pension: EPFO gives pension to orphan children under EPS-95, know till what age will they continue to get this benefit? first appeared on Rightsofemployees.com.

What is the matter of removal of EPS limit Before proceeding on this matter, let us understand what is this whole matter. At present, the maximum pensionable salary is limited to Rs 15,000 per month. Meaning, whatever your salary may be, but the calculation of pension will be only on Rs 15,000. The matter is going on in the court to remove this limit.

On August 12 last year, the Supreme Court had adjourned the hearing of a batch of petitions filed by the Union of India and the Employees’ Provident Fund Organization (EPFO), which said that the pension of employees cannot be limited to Rs 15,000. . The hearing of these cases is going on in the court.

What are the rules regarding EPS now?

When we start working and become a member of EPF, then at the same time we also become a member of EPS. The employee gives 12% of his salary in EPF, the same amount is also given by his company, but a part of this 8.33 percent also goes to EPS. As we mentioned above that at present the maximum pensionable salary is only 15 thousand rupees, that means every month the pension share is maximum (8.33% of 15,000) Rs 1250.

Even when the employee retires, the maximum salary for calculating the pension is considered to be only Rs 15 thousand, according to this, the maximum pension an employee can get under EPS is Rs 7,500.

This is how pension is calculated

One thing must be noted that if you have started contributing to EPS before September 1, 2014, then the maximum limit of monthly salary for pension contribution for you will be Rs.6500. If you have joined EPS after September 1, 2014, then the maximum salary limit will be 15,000. Now see how pension is calculated.

EPS Calculation Formula

Monthly Pension = (Pensionable Salary x Years of EPS Contribution)/70
Here assuming the employee started contributing to EPS after 1st September, 2014, then the pension contribution would be Rs 15,000. Suppose he has worked for 30 years.
Monthly pension = 15,000X30/70 = Rs 6428

Maximum and Minimum Pension One more thing to remember that the employee’s service of 6 months or more will be considered as 1 year and if it is less then it will not be counted. Meaning if the employee has worked for 14 years 7 months, then it will be considered as 15 years.

But if you have worked for 14 years and 5 months, then only 14 years of service will be counted. The minimum pension amount under EPS is Rs 1000 per month, while the maximum pension is Rs 7500. 8,571 will get pension If the limit of 15 thousand is removed and your basic salary is 20 thousand rupees, then the pension you will get according to the formula will be this. (20,000 X 30)/70 = Rs 8,571.

Existing Conditions for Pension (EPS)

It is necessary to be an EPF member for pension.
It is mandatory to be in the job for at least 10 regular years.
Pension is available when the employee turns 58.
There is an option to take pension after 50 years and even before the age of 58.
Keep in mind that on taking the first pension, you will get the reduced pension and for this you will have to fill Form 10D.
On the death of the employee, the family gets pension.
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 post EPS Pension Increased: The biggest update on EPS, pension will be doubled, the limit of 15000 is going to be removed! first appeared on Rightsofemployees.com.

Now EPFO ​​is preparing a central system which will ease some difficulties. However, the EPFO ​​will approve it after considering the proposal for setting up a central pension distribution system in its meeting to be held on July 29 and 30. With the establishment of this system, pension will be transferred in one go to the accounts of 73 lakh pensioners across the country.

At present, 138 regional offices of EPFO ​​transfer pension to the accounts of the beneficiaries of their area. In such a situation, pensioners get pension on different days and times. A source told PTI-language that the formation of a central pension distribution system will be proposed in the meeting of the Central Board of Trustees (CBT), the apex decision-making body of EPFO, to be held on July 29 and 30.

The source said that after the installation of this system, the distribution of pension will be done on the basis of the database of 138 regional offices. With this, 73 lakh pensioners will be given pension simultaneously. The source said that all the regional offices deal with the needs of the pensioners of their area differently. With this, pensioners are able to pay pension on different days.

In the 229th meeting of the CBT held on November 20, 2021, the trustees had approved the proposal for development of a centralized IT based system by C-DAC.

The Labor Ministry had said in a statement after the meeting that after this the details of regional offices would be transferred to the central database in a phased manner. This will facilitate the operation and supply of services.

What is Employees Provident Fund

Employees’ Provident Fund, commonly known as PF (Provincial Fund). It is a retirement or post-retirement benefit plan. This facility is available to all salaried employees. Under this scheme, the employee as well as the employer (company or institution) contributes a certain amount from their basic salary (approximately 12%) to the EPF account. The entire 12% of your basic salary is invested in an Employees’ Provident Fund.

Out of 12% of basic salary, 3.67% is invested in Employees Provident Fund or EPF and the rest. 8.33% is converted into your EPS or employee’s pension plan. Therefore, Employees’ Provident Fund is one of the best ways of saving which enables the employees to save a part of their salary every month and use it after retirement. Nowadays, one can check PF that how much money got deposited in his/her PF account.

The post Good news for 73 lakh pensioners, EPFO ​​will transfer money to the account on time, know how immediately first appeared on Rightsofemployees.com.

For this reason, the Employees’ Provident Fund Organization asks the account holders to complete the process of e-nomination at the earliest. Giving information on this matter, EPFO ​​has said that you can do the nomination of EPF / EPS (EPF / EPS) by following some easy steps.

The post Attention PF Account Holders! Add the name of the nominee as soon as possible, you will get full benefit of 7 lakhs first appeared on Rightsofemployees.com.

The demand has once again intensified to remove the ceiling on the Employee Pension Scheme (EPS). The matter is still pending in the Supreme Court. But, the union says that the Labor Ministry should take a decision in this. Settlement can also be done out of court. In the existing structure, there is a ceiling of Rs 15000 for pension under the EPS scheme. Due to this ceiling, pensioners are getting very less pension for many years. According to sources in the Ministry of Labor, the Ministry of Labor has received a note in this regard. In this, a warning of movement has also been given.

What is the rule now?

When an employee becomes a member of Employee Provident Fund (EPF), he also becomes a member of EPS. Contribution of 12% of the basic salary of the employee goes to PF. Apart from the employee, the same part also goes to the employer’s account. But, a part of the contribution of the employer is deposited in the EPS ie Employee Pension Scheme. The contribution of basic salary is 8.33% in EPS. However, the maximum limit of pensionable salary is Rs 15,000. In such a situation, only a maximum of Rs 1250 can be deposited in the pension fund every month.

Understand by example

According to the existing rules, if the basic salary of an employee is Rs 15,000 or more, then Rs 1250 will be deposited in the pension fund. If the basic salary is 10 thousand rupees, then the contribution will be only 833 rupees. The calculation of pension on the retirement of the employee is also considered as the maximum salary of 15 thousand rupees only. In such a situation, after retirement, employees can get only Rs 7,500 as pension under EPS rule.

What if the limit of 15,000 is removed?

According to EPFO’s Retired Enforcement Office Bhanu Pratap Sharma, if the limit of 15 thousand rupees is abolished from the pension, then more than Rs 7,500 can be got pension. But, for this, the contribution of the employer to the EPS will also have to be increased.

How is pension calculated?

Formula for EPS Calculation = Monthly Pension = (Pensionable Salary x Number of Years Contribution in EPS Account)/70.

If someone’s monthly salary (average of last 5 years salary) is Rs 15,000 and the duration of the job is 30 years, then he will get a pension of only Rs 6,828 per month.

How much pension will you get if the limit is removed?

• If the limit of 15 thousand is removed and your basic salary is 20 thousand, then the pension you will get according to the formula will be this. (20,000 X 30)/70 = Rs 8,571
• Existing Conditions for Pension (EPS)
• Must be an EPF member.
• Must be in job for at least 10 regular years.
• Pension is available at the age of 58 years. Option to take pension after 50 years and even before the age of 58.
• On taking the first pension, the reduced pension will be available. For this, Form 10D has to be filled.
• On the death of the employee, the family gets pension.
• 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 post Employee Pension Scheme: Demand raised again for removal of ceiling, limit can be increased to ₹ 20,000! first appeared on Rightsofemployees.com.

Benefits of e-nomination
– EPFO ​​said that the member family can claim settlement online on the death of the member after filing e-nomination.

– Online payment of PF, pension and insurance up to Rs 7 lakh to eligible nominees will be done with paperless and quick claim settlement.

In order to avail Provident Fund (PF), Pension (EPS), and Insurance (EDLI) benefits, a nomination must be made in one’s EPF account.

How to register e-nomination

– Members can visit the official EPFO ​​UAN portal epfindia.gov.in

Click on Services and select ‘For Employees’ and subsequently click on ‘Member UAN/Online Service’.

– Log in using UAN and Password

Now, under the ‘Manage’ tab, select the ‘e-Nomination’ option

– Under the ‘Provide Details’ tab that appears on the screen, click ‘Save’

– Now click on ‘Yes’ to update the family declaration

Now click on ‘Add Family Details’ to add the details of the family member in the e-nomination form. More than one nominee can also be added

Click on ‘Nomination Details’ to declare the total amount of shares.

Next, click on ‘Save EPF Nomination’. Click on ‘e-Sign’ to generate OTP and submit the OTP received on Aadhaar linked mobile number and process is now complete.

The post EPFO e-Nomination: Benefits Of EPF e-nomination ! How to register e-nomination first appeared on Rightsofemployees.com.