EPS Pension Yojana Update: In this article on Employee Pension Scheme, the pension is fixed on the retirement of the employee! But, since there is a limit! That’s why the pension after retirement is not very high! That’s why the demand to remove this limit is being made from EPFO (Employees’ Provident Fund Organisation)!
EPS Pension Yojana Update
The investment limit under the Employee Pension Scheme can be removed soon! Hearing in this regard is now going on in the Supreme Court. It is being told that a decision on this pension can be taken soon. But what does this EPFO (Employees’ Provident Fund Organisation) hearing and this matter have to do with you! And how will it affect your life, let us tell you!
What is the point of removing the EPS limit?
Let us know before proceeding on this EPS (Employee Pension Scheme) matter! What is the whole matter. At present, the maximum pensionable salary (maximum pensionable salary) is limited to Rs 15,000 per month. Means whatever your salary is! But the pension will be calculated according to Rs 15,000 only! The matter of removal of this limit by EPFO (Employees’ Provident Fund Organisation) is going on in the court.
Learn this also :::- Online Business Ideas: :Earn good money without investing, start this online business
EPS Pension Yojana Update
The Supreme Court had on August 12 last year adjourned the hearing of a batch of petitions filed by the Union of India and the Employees’ Provident Fund Organisation. In which it was said that the pension of the employees (Employee Pension Scheme) is not limited to Rs 15,000! Might be possible ! Hearing of these cases is going on in the court.
Now what are the rules regarding EPS
When we start a job and become a member of EPFO (Employees’ Provident Fund Organisation)! So we become a member of EPS too! The employee gives 12% of his salary in EPF, his company also gives the same amount, but 8.33 percent of it also goes to EPS (Employee Pension Scheme)!
EPS Pension Yojana Update
As we have mentioned above that at present the maximum EPS (Employee Pension Scheme) pensionable salary is only 15 thousand rupees! That is, the maximum share of pension every month (8.33% of 15000) is Rs 1250! Even after the retirement of the employee, the calculation of pension (pension) is considered for the maximum salary. According to this, an employee can get a maximum pension of Rs 7,500 under EPFO (Employees’ Provident Fund Organisation)! If that is 15 thousand rupees!
This is how pension calculation is done
One thing to note! That if you have started contributing to EPS (Employee Pension Scheme) before September 1, 2014! So for you the maximum limit of monthly salary for pension contribution will be Rs.6500. If you have joined EPFO (Employees’ Provident Fund Organisation) after 1 September 2014! So the maximum salary limit will be 15,000. Now see how the pension is calculated!
EPS Calculation Formula: EPS Pension Yojana Update
Monthly Pension = (Pensionable Salary x Years of EPS Contribution)/70
Here assume that the employee started contributing to the EPS (Employee Pension Scheme) after September 1, 2014, then the pension contribution would be Rs.15,000. Will happen
Suppose he has worked for 30 years!
EPFO (Employees’ Provident Fund Organisation) monthly pension = 15,000X30/70 = Rs 6428
Maximum and minimum pension: EPS Pension Yojana Update
One more thing to remember! That 6 months or more service of the employee in EPFO (Employees’ Provident Fund Organisation) will be considered as 1 year and if it is less! So it won’t count! Means if the employee has worked for 14 years and 7 months! So according to the rules of pension,
it will be considered as 15 years! But if you have worked for 14 years and 5 months! So only 14 years of service will be counted! The minimum pension amount under the Employee Pension Scheme is Rs 1000 per month! While the maximum pension is Rs 7500!