The EPFO Rules for Pension are poised to bring significant benefits to employees in private companies. Did you know that the government has recently introduced a scheme that will greatly benefit the employees of private companies? Now, the pension of PF employees will also be increased. After retirement, PF employees will easily get a pension of up to Rs 12500.
Employees can easily take advantage of this. EPFO has introduced a scheme that has the potential to enrich PF employees. The EPFO scheme’s name is Higher Pension Scheme. Up until now, the EPFS scheme fixed the maximum limit of pensionable salary at Rs 15000. However, this limit is no longer in place.
Some labor organizations have now demanded an increase to Rs 25,000 under the new scheme. If the new scheme increases it to Rs 25,000, the monthly pension will also rise after retirement.
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How will private job holders get pensions?
If your private company in India deducts your Provident Fund (PF), you will also receive a pension. First and foremost, the employee must have worked for a minimum of 10 years to qualify for this pension. A portion of your salary also goes to the EPF account. However, the Employee Pension Scheme is regarded as excellent.
EPFO is in charge of running this scheme. The year 1995 saw the launch of this EPS scheme. Simultaneously, it applies to employees who are employed in the organized sector. The employee’s service should last at least 10 years. Even after this, the employees will only begin to receive pension benefits once they reach the age of 58.
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How is a pension received?
The confusion surrounding how PF employees receive pension benefits after retirement can be resolved. The PF account receives 12 percent of the employee’s basic salary + DA. The employer’s contribution is also 12 percent. Moreover, the company allocates 8.33% of its contribution to the employee’s pension fund, with the remaining 3.67% going to PF.
Along with this, the maximum pensionable salary limit is Rs 15,000. Simultaneously, a monthly amount of Rs 1250, calculated as 15000 X 8.33/100, will be transferred to his pension account. For your information, PF employees have been demanding an increase in the maximum salary limit to Rs 25,000 for a considerable amount of time. Accepting the employees’ demand will undoubtedly bring good fortune.
