After which now the pension of government employees will be doubled. At present, hearing is going on in the Supreme Court on this matter. If the government takes this decision, then no matter what your salary is, but your pension will be calculated on Rs 15,000 only.

Your pension will increase

A case is going on in the Supreme Court to abolish this salary limit of the Employees’ Provident Fund Organization (EPFO). Along with this, pension calculation in EPFO can also be done on the previous salary i.e. people getting high salary. After this decision of EPFO, there will be a bumper increase in the pension received by the employees. After which pensioners can be given the benefit of more pension.

How much is the maximum pension now?

Employees are members of EPFO. 12 percent of the salary of employed people goes to the EPF account. Along with this, the same contribution is also made by the employer of the employees i.e. the office. Whose 8.33 percent is deposited in the Employees Pension Scheme. If we talk about the maximum pensionable salary at this time, then it is Rs 15,000.

Pension is available after the age of 58 years.

The salaried employees are given the benefit of pension after the age of 58 years. However, for this, it is also mandatory for the employees to work for at least 10 years. Complaints are also being made that pensioners have to wait for a long time to get pension. To remove this complaint, it has been decided by EPFO to fix the date of pension.

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The Central Government prepares to provide some relief to all sections including the poor, women, farmers and the elderly. This time it is expected that there can be an increase in the pension scheme of the elderly population. Along with this, these people can also get the benefit of exemption in income tax.

You can get 3 big gifts before the general budget, some non-governmental organizations (NGOs) have given suggestions to take steps for the betterment of the elderly population of the country. These include increase in old age pension, additional income tax relief and GST exemption on products used repeatedly by older people.

Age well Foundation demands

NGO Agewell Foundation said that in view of the increasing gap between old and young generation, changes in the lifestyle of older people in the light of longer life span, favorable provisions should be made in the budget. The Foundation said in a statement that it is necessary to engage with a large number of retired people to keep them continuously active.

Pension should be revised

The Foundation has appealed to the Ministry of Finance and other stakeholders to consider its recommendations and suggestions while finalizing the next budget. The statement said that the old age pension should be revised according to the current inflation.

Pension to be increased by Rs 3000 per month

The statement said that the present share of the central government in the monthly old age pension should be increased to Rs 3,000 per month for each eligible old age person. The State Government should also be advised to revise its share accordingly.

Interest increased on investment schemes

Apart from this, the Foundation has demanded an increase in the interest rate on bank, post office and other deposit and investment schemes for the elderly under financial security measures. It has been said that more relief should be given in income tax, especially for old people.

GST exemption on these products

NGO has audited services and products frequently used by the elderly such as audit diapers, medicines, healthcare equipment like wheelchairs and walkers, hospitalization of elderly patients above 70 years, Mediclaim policies and medical consultation There has also been a demand for GST exemption on the fee.

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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.

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The new year can bring many great news for government employees. While on one hand there is talk of sealing many big decisions related to salary, on the other hand there are chances of increase in pension and maternity benefits. Actually, Finance Minister Nirmala Sitharaman will present the budget for the next financial year (Union Budget 2023) on February 1, 2023. Along with this, the preparations for the budget are also going on at a fast pace. Meanwhile, big economists have demanded to increase pension under social security and make adequate provision for maternity benefits before the budget of the next financial year.

Demand to increase pension

In fact, economists have demanded the Finance Minister to increase pension under social security and make adequate provision for maternity benefits. For this, he has written a letter to the Finance Minister.

Those who have signed the letter include Jean Dreze, Professor Emeritus at Delhi School of Economics, Pranab Bardhan, Professor Emeritus at University of California Berkeley, R Nagaraj, Professor of Economics at Indira Gandhi Institute of Development Research (IIDR), Mumbai, IIT Delhi Professor of Economics Ritika Khera, Honorary Professor of JNU Sukhdev Thorat and others are included. The economists who signed the letter have also demanded full implementation of maternity rights under NFSA norms in the budget for the financial year 2023-24. Let us tell you that at least Rs 8,000 crore will be needed for this.

A letter was also written to the former Finance Minister

According to the information given by the news agency language, the economists have told in the letter that they had earlier written letters to former Finance Minister Arun Jaitley on December 20, 2017 and December 21, 2018. He has written in this letter, ‘We are reminding you again through the letter. We have tried to identify 2 priorities for the next Union Budget. In this, first, there is a provision for increase in pension for social security and second, adequate maternity benefits.

It has also been written in the letter that the central government’s contribution to the pension of the elderly under the National Old Age Pension Scheme (NOAPS) has remained stagnant at just Rs 200 per month since 2006. While this is not correct. The central government’s contribution should be increased immediately to at least Rs 500 (if possible more). In fact, in view of the rising inflation, this demand has been raised earlier also from the pensioners.

Discussion on widow pension also

The letter states, “Based on the existing 2.1 crore pensioners, an additional provision of around Rs 7,560 crore is required for this. Similarly, the pension for widows should be increased from Rs.300 per month to Rs.500 per month. It has been told that Rs 1,560 crore will be spent on pension for widows.

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