The Government of India has implemented the UPS System for the pension of its employees, due to which the employees are going to get a lot of benefits. Apart from this, big news is also coming out for the employees working in the private sector.
The Employees Provident Fund Organization (EPFO) has demanded that the government increase the salary limit of all employees at the time of pension calculation.
Now if the government takes its decision in favour of the employees, then crores of employees will be happy and they will get the benefit of a very strong pension after retirement.
Demand to increase the salary limit
Let us tell you that according to the news that has come out so far, the Labour Ministry has demanded from the Finance Ministry of the country that the pension of the employees, which is currently being calculated from ₹ 15000, should now be increased to ₹ 21000.
It will have an impact on pension and EPF contribution The proposal was sent by the Ministry of Labour in April this year and in that proposal, the pension of employees which is currently calculated at 15 thousand, was demanded to be increased to 21 thousand.
Pension Calculation
Let us tell you that since the year 2014, pension has been calculated at 15 thousand rupees and there is talk about increasing its limit.
If it is approved by the government, then there will be a big change in the amount of pension received by crores of employees working in the private sector, and along with this, it will also affect the contribution made by the employee.
The salary received every month will be reduced Yes, it is true that more money from the salary you get every month will go to EPFO, due to which the salary you get every month will be reduced.
But this will be right for your future. If the government increases the salary limit from Rs. 15,000 to Rs. 21,000, then you will get the benefit of Rs. 2550 more pension every month.
To calculate this, the formula average salary X pensionable service/70 is used. Here the average salary taken includes the basic salary of the employee and the dearness allowance he gets.
After the new rules are implemented, the contribution to the employee’s provident fund will increase, due to which the salary received every month will decrease.