Employee Pension Scheme Good News: There is big news for 6.5 crore shareholders of the Employees’ Provident Fund Organisation. There can be a big decision regarding the ceiling of your Employee Pension Scheme pension fund. Although this matter is still in the Supreme Court. But, EPFO sources say that the Ministry of Labor may soon take a big step on this.
Employee Pension Scheme Good News
Employee Pension Scheme Good News
According to the existing rules of the Employees’ Provident Fund Organisation, there is a limit of Rs 15000 in the Employee Pension Scheme pension. In such a situation, only a maximum of Rs 1250 is deposited in the pension fund every month. If the ceiling is removed, it can be increased to Rs 25,000. In such a situation, the amount deposited in EPFO Pension Fund can also increase.
Basic salary limit in EPS (EPFO Latest Update)
At present, the basic salary limit for Employees’ Provident Fund Organization contribution is Rs.15,000. It can be extended. If a person’s basic salary is Rs 30,000, then 12% of his contribution on that salary is deposited in the Employee Pension Scheme. The employer also contributes an equal share, but the employer’s share is deposited in two places. First- EPFO EPF and second- Pension (EPS).
Employee Pension Scheme: Only Rs 1,250 is deposited in the pension fund
Employees’ Provident Fund Organization (Employees’ Provident Fund Organisation) 12 percent of the employer’s share will also be deposited on the basic salary of Rs 30000. But, the limit of basic salary in pension fund is Rs.15000. Due to the Employees Pension Scheme limit, 8.33 percent of the basic salary (15000) is deposited only on Rs. 1250. But, the EPFO limit can be increased to Rs.25000. In this case, the calculation will be Rs 25000. That is, Rs 2082.50 (Rs 2083) will be deposited in the Pension Fund. This will also increase the pension.
Understand the current structure in terms of Rs 30000
- Basic Pay – Rs 30000
- Employee’s contribution – Rs.3600 @ 12%
- Employer’s contribution – 12% of 3.67% Rs.2350
- Contribution to pension – Rs 1250 at the rate of 8.33 percent
Decision may be taken on increasing the ceiling: Employees’ Provident Fund Organization
According to a trustee of the Employees’ Provident Fund Organisation, at present the limit of basic pay is Rs 15,000, which has been proposed to be increased to Rs 25,000. If the decision is taken to increase the limit of Employee Pension Scheme pension, then it will definitely be good news for the pensioners. Apart from increasing the EPFO pension fund, another advantage is that for those whose salary is above the basic salary limit, PF contribution is optional. In such a situation, now more people will be able to come in this circle.
6.5 crore people will get benefit: EPFO Latest Update
According to retired EPFO enforcement officer Bhanu Pratap Sharma, if this decision is taken, 6.5 crore Employees’ Provident Fund Organization (EPFO) customers will get benefited. Firstly, more people will come under its purview and secondly, if the employer’s share increases, then the Employee Pension Scheme pension fund will also increase.
Universal Minimum Wage Formula : Employees’ Provident Fund Organization
If sources are to be believed, the members of the Central Board of Trustees (CBT) are in favor of increasing the limit on EPFO Pension Fund. There are two types of logic behind this. First- The formula of Universal Minimum Wage which is to be implemented in the whole country, in which salary can be fixed at around 18 thousand rupees. Employee Pension Scheme (Employee Pension Scheme) There is a need to increase the existing salary limit in ACE. This will help in bringing more and more people into the Employees’ Provident Fund Organization and will increase social security.
What is Employee Pension Scheme – 95
Currently, those EPFO employees in the organized sector whose salary (basic salary + DA) is up to Rs 15,000 come under EPS-95. 8.33% of the salary goes to Employee Pension Scheme – 95% pension i.e. a maximum of Rs 1250 per month can be deposited. According to the Employees’ Provident Fund Organisation, there are 68 lakh such members.
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