In such a situation, the question arises whether there is such a scheme, through which employees working in the private sector can also get the benefit of pension after retirement. The answer is yes. By investing in Provident Fund (PF), you get pension after retirement, but for this some conditions have to be fulfilled.

Here also the condition of employment is 10 years

To get pension in UPS, government employees have to work for at least 10 years. The same condition applies to private sector employees as well. If they want to avail pension, they will have to invest in Employees Pension Scheme (EPS) for at least a decade. Then you will start getting pension after the age of 58. Even if you have worked for nine and a half years, it will also be counted as 10 years as per the rules. But, if you work for less than this, you can withdraw money even before retirement, because you are not entitled to pension.

Also Read: NPCI simplified FASTAG payments using just the mobile number.

What needs to be done for pension?

The Employees’ Pension Scheme is managed by the Employees’ Provident Fund Organization (EPFO). You do not have to do anything separately to invest in it. PF money is deducted from your salary every month. You and your company contribute equally to it. 12 percent of the employee’s basic salary + DA goes into the PF account every month.

The company also contributes the same amount. Out of this, the employee’s entire share will go to EPF. But, the company contributes only 3.67 percent to EPF. The remaining 8.33 percent goes to the Employees’ Pension Scheme (EPS) and from this you will get pension after retirement.

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In this, information related to three cases has been given. Firstly, what will happen after submitting joint application for higher pension. Secondly, what will happen if there is any mistake in the joint application. Third, what if the joint application is not approved by the employer company?

Will be investigated by field officer

If you also want to apply for more pension, then its last date is 3rd May. According to the circular issued by EPFO, after submitting the Joint Application Form till the last date, it will be scrutinized by the field officer. Once all the documents are completed, the salary details are submitted by the employer. After this it will be verified from the data available with EPFO. After the data is certified, the balance amount will be calculated and an order will be given to transfer it.

One month’s time to give correct information

If the information available with EPFO ​​does not match with the information given by the employer and the employee, then the employer and the employee will be informed by the EPFO. One month’s time will be given to provide correct information. Apart from this, in case the joint application form is not approved by the employer, the employer will be given a chance to provide additional evidence. This opportunity will also be given for one month. Information about this will be given to both employees and pensioners.

The post EPS Pension: Good news for Private employees! Government issued circular for salaried clauses first appeared on Rightsofemployees.com.

How much does Gratuity get?

According to the rules regarding gratuity, gratuity is made on completion of 5 years in any institution. Gratuity is calculated on the basis of your salary in that month on the day you leave the company on completion of 5 years.

For example A worked in a company for 10 years. In the last month, 50 thousand rupees comes in A’s account. In this his basic salary is 20 thousand rupees. 6 thousand rupees is his Dearness Allowance.

The calculation of gratuity will be based on 26 thousand (Basic and Dearness Allowance). Working days are considered 26 in gratuity. Now divide 26 thousand by 26. The result turned out to be 1000 rupees. Now it has to be multiplied by 15 days because it is added according to 15 days in a year. The result will be 15000. If he worked for 5 years, then he would get a total of 75000 rupees as gratuity.

Gratuity is mentioned in the Social Security Bill

The rules of gratuity have been given in Chapter 5 of the Social Security Bill, 2020. Apart from salary, pension and provident fund, gratuity is also given to the employees working in the same company for a long time.

Gratuity is a reward given to an employee from the company. If the employee fulfills certain conditions of the job, then he is paid gratuity from the guarantee as per the prescribed formula. A small part of the gratuity is deducted from the salary of the employee, but the company pays a large part.

Gratuity will be available even on 1 year job?

According to the information given in the draft copy filed in the Lok Sabha, if any employee works for one year in any place, then he will be entitled to gratuity. The government has made this arrangement for fixed term employees i.e. those working on contract.

If a person works on a contract with a company for a fixed period of one year, he will still get gratuity. The contractual employee is now being given the right to social security like a regular employee. Apart from contract employees, those working in seasonal establishments will also get the benefit of this.

Who will benefit from Gratuity Act 2020?

Only fixed term employees will get the benefit of Gratuity Act 2020. The old rule will continue for others as well. At present, gratuity is fixed on the basis of 15 days’ salary every year on completion of five years of service. Gratuity is given to the employees by the company. Its maximum limit is 20 lakh rupees.

The post Gratuity New Rules: Private employees have fun with the new rule of gratuity, will get 75000 rupees, know details first appeared on Rightsofemployees.com.