EPFO Rules: According to a recent update, let us tell you that the central government has increased the wage ceiling limit under EPFO. According to sources, this step will have a direct impact on salaried employees…. To know the complete information related to this update, read this news completely-
EPS Pension Calculation! The central government can increase the wage ceiling limit under EPFO from ₹ 15,000 to ₹ 21,000 per month. According to sources, this step will have a direct impact on salaried employees. Their contribution to EPF will increase, which will increase the pension after retirement. Also, more employees will be able to join EPS. Wage ceiling limit is the maximum salary limit on the basis of which the employee’s contribution to EPF (Employees Provident Fund) and EPS (Employees Pension Scheme) is decided.
EPFO: Contribution in EPS will increase –
Talking about the present time, every month 12 percent of the employee’s basic salary + DA is deposited in the PF account. The employer’s contribution is also 12 percent. Out of the contribution made by the company, 8.33 percent goes to the employee’s pension fund (EPS) and the remaining 3.67 percent goes to the PF account. According to the current rules, the maximum limit of pensionable salary is Rs 15 thousand. In such a situation, 15000 X 8.33 /100 = 1250 rupees will go to his pension account every month. The remaining 1750 rupees goes to the EPF account.
But if the maximum limit of pensionable salary increases to Rs 21,000, then 21000 X 8.33 /100 = 1749 rupees will be deposited in EPS and 1251 rupees will be deposited in EPF monthly.
Pension Calculation: Pension on Basic Salary of Rs 21,000-
Suppose you started working at the age of 25 and retired at the age of 58, i.e. you served for a total of 33 years. Your pension will be calculated on the average monthly salary of the last 60 months. If your maximum basic salary during this period is Rs 21,000, then you will get pension on this basis. Currently there is a capping of Rs 15,000, but there are reports that the government may increase it to Rs 21,000 per month, which can potentially increase your pension.
