EPFO Pension Latest Update: There is big news for more than 6.5 crore subscribers of Employees’ Provident Fund Organisation. There may be a big decision regarding the ceiling of your pension fund soon. According to EPFO sources, the government wants to bring more and more people under the ambit of PF. In this direction, the limit of pension (EPFO Pension Update) can be increased from the basic salary of Rs.15,000 to Rs.21,000.
EPFO Pension Latest Update
According to the existing rules of the Employees’ Provident Fund Organisation, a maximum of Rs 15,000 basic salary is available in EPS pension. With this, only a maximum of Rs 1250 can be deposited in the EPFO pension fund every month. If changes are made in this, then this limit may increase to Rs 21,000 (EPFO Pension).
What is the limit of basic salary: EPFO Latest Update
When a member contributes to EPF contribution (EPS Pension), some money goes to EPFO EPS apart from his EPF. This is the portion that gets deposited from the employer’s account. But, the maximum limit of its deposit and pension fund is Rs 15000. Now it can be increased by the Employees’ Provident Fund Organization! EPFO Pension Latest Update
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Think of it like this, if the basic salary of an EPFO subscriber is Rs 30,000, then 12% of his contribution on that salary is deposited in the provident fund.
An equal amount is also contributed from the employer’s account. But, the employer’s share is deposited in the Employees’ Provident Fund Organization at two places. First- EPF and second- Pension (EPS).
Rs 2083 will be deposited instead of Rs 1250 (EPFO Pension Update)
Employees’ Provident Fund Organization (Employees’ Provident Fund Organization) 12 percent of the employer’s share will also be deposited on the basic salary of Rs.30000. But, the limit of the basic salary in pension fund is Rs ..15000. Due to
EPFO limit, 8.33 percent of basic salary (15000) is deposited only on Rs. 1,250. If the limit is raised, then this share can be fixed at the limit of Rs 25,000. That is, Rs 2,083 will be deposited in the Pension Fund (EPFO Pension Fund).
How Contributions Are Calculated
- 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
Recommendation to increase the limit to 21 thousand (Employees’ Provident Fund Organization Update)
According to a trustee of EPFO, at present the basic salary limit is Rs 15,000, which has been proposed to be increased to Rs 21,000.
If the decision to increase is taken, then definitely there will be an increase in the amount of pension. Apart from increasing the Employees’ Provident Fund Organisation’s pension fund, another advantage is that for those whose salary is above the basic salary limit, PF account contribution is optional.
EPFO’s subscriber base will increase
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 Pension Fund (EPFO Pension Fund) will also increase.
Employees’ Provident Fund Organisation: Universal wage formula will be applicable
First- The formula of EPFO Universal Minimum Wage which is to be implemented in the whole country, in which the salary (EPFO Salary Limit) can be fixed at about 18 thousand rupees. . This will help in bringing more and more people into Employees’ Provident Fund Organization and social security will increase.