Employee Pension Scheme Good News 2023: A decision can be taken soon on the removal of capping from the Employee Pension Scheme. The Supreme Court bench can take a decision in this EPS Pension Fund case stuck for a long time. Although, it is difficult to say in whose favor the decision will be, but both the sides have presented their arguments. The matter is pending since last few years due to paucity of funds with EPFO.
EPS Employee Pension Scheme Good News 2023
It is expected that the board of EPFO will take a decision on the monthly capping of Rs 15000 for the CBT Employees Pension Scheme pension. This can be included in the next meeting of the EPS Pension Fund CBT. The Supreme Court will give its verdict on the petitions of the Government of India and the Employees’ Provident Fund Organization (EPFO).
What are the rules regarding Employee Pension Scheme
When an employee becomes a member of the Employees’ Provident Fund, he also becomes a member of the Employee Pension Scheme. 12% of the basic salary of the employee goes to the PF contribution.
Apart from the employee, the same amount also goes into the account of the employer. But, a part of the employer’s contribution is deposited in the EPS i.e. Pension Fund. 8.33% of the basic salary is contributed to the EPS Pension Fund. However, the maximum limit of pensionable salary is 15 thousand rupees.
In such a situation, only a maximum of Rs 1250 can be deposited in the pension fund every month. Employee Pension Scheme Good News 2023
Learn this also :- Online Business Ideas: Earn good money without investing, start this online business
How to get pension on the maximum limit EPS Pension Fund
According to the rules, if the basic salary of an employee is Rs 15,000 or more, then Rs 1,250 will be deposited in the pension fund. If the basic salary is Rs 10,000, then the contribution will be Rs 833 only. Employee Pension Scheme Good News 2023
The calculation of EPS Pension (Pension Fund) on the retirement of the employee is also considered as the maximum salary of Rs 15,000 only. In such a situation, after retirement, the employee can get only Rs 7,500 as pension under the Employee Pension Scheme rule.
What if the limit of 15,000 is removed
According to EPFO’s retired enforcement office Bhanu Pratap Sharma, if the limit of Rs 15,000 is removed from the EPS pension (Pension Fund), then more than Rs 7,500 pension can be received. But, for this, the employer’s contribution to the Employee Pension Scheme will also have to be increased. Employee Pension Scheme Good News 2023
How pension is calculated in Employee Pension Scheme
Formula for EPS Pension Fund calculation = Monthly Pension = (Pensionable Salary x Number of years of contribution to EPS account)/70.
If someone’s monthly salary (average salary of last 5 years) is Rs 15,000 and the duration of the job is 30 years, then he will get Employee Pension Scheme pension of only Rs 6,828 every month.
How much pension will be available if the limit is removed: EPS Pension Fund
If the limit of 15 thousand is removed in EPS Pension (Pension Fund) and your salary becomes 30 thousand then according to the formula you will get pension.. (30,000 X 30)/70 = Rs 12,857
What are the rules for withdrawal of pension in Employee Pension Scheme?
If you want to withdraw the amount of EPF, then you can withdraw the amount deposited in your account anytime. Whether your job is of 6 months or 10 years. But, you may have some difficulty in withdrawing the amount of EPS Pension (Pension Fund). Because, it has many rules, which you should understand the Employee Pension Scheme.