On the other hand, if the camping on EPS is removed this year, then there will be an increase of more than 7500 in the pension of the employees.
On one hand, from April 1, EPFO employees are going to get a big setback. On the other hand, soon they can be given big benefits. In fact, a big decision can be taken soon on the pension limit of Employees’ Provident Fund employees that their pension can be doubled in 2022. For this, hearing is going on in the Supreme Court. A big decision can be taken on this soon.
For this, proposals have been made by the Labor Ministry to increase the amount of pension under the Employees’ Pension Scheme. After which a recommendation was made in the Standing Committee of Parliament to double it.
Apart from this, from April 1, major changes were being made in another related to EPF. If the contribution of the employee in the Employees’ Provident Fund account exceeds Rs 2.5 lakh in the previous financial year, then he will have to pay tax on the interest earned on the contribution in excess. A new EPF account will also be created for computing the eligible interest.
In this matter, the Employment Minister Bhupendra Yadav, while replying in the Rajya Sabha, said that the formulas are pre-determined for deciding the amount of pension.
In 2014, under the EPS 1995, the government had started a minimum pension of thousand rupees per month to the pensioners. The budgetary support of 1.16 of the salary received by the Employees’ Provident Fund Organization under EPS over the years is in addition.
For new information, the MLA said that a high-powered monitoring committee has been constituted to consider the demand of pensioners of the Employees’ Pension Scheme.
Which will evaluate and review the EPS 1995. Based on this a new process will be started. Only after that the amount of pension can be considered for increasing.
The issue of eps-95 was also considered by the committee constituted on the same issue and it has been recommended not to link the pension accepted under EPS-95 with the cost of living index.
According to the information, under the Employee Pension Scheme, every month camping of ₹ 15,000 has been started for pension. A petition was filed in the Supreme Court for its removal. The hearing of which is going on.
On the other hand, if the camping on EPS is removed this year, then there will be an increase of more than 7500 in the pension of the employees.
The question was asked by Rajya Sabha member M Shanmugam, in response to which the minister said that the formula for fixing the pension has been decided. Under the EPS 1995 social security scheme, the pension of the employees is fixed.
For this, the contribution of the employees is 12 percent while the employer has to pay 8.33 percent. At the same time, 3.67 percent of the amount goes to the EPS account.
According to the current calculations, if the employee is being given EPS according to the basic salary of ₹ 15,000, then he will have to contribute Rs 1250 at the rate of 8.33 percent. While the rest of the amount will go to the EPS account.
Accordingly, pension on 15000 basic will be Rs.3214.28 per month at the rate of 15000*15/70. Till when the amount of this pension has been contributed in the account for 14 years 7 months.
