There is still confusion among the people whether to select this scheme or not. Some people are not even clear whether they are eligible for this or not. In such a situation, we have the solution for all your confusions.
You have less time left to get more pension than the new rule of Employees Pension Scheme i.e. EPS. Only a few days are left for applying for more pension. Let us tell you that this opportunity will not be available after May 3. But, there is still confusion among the people whether to select this scheme or not. Some people are not even clear whether they are eligible for this or not. In such a situation, we have the solution for all your confusions.
Let us tell you that if your monthly salary is 50 thousand or more, then your pension can increase up to 3 times. Let us explain to you its complete calculation.
How much can the pension increase?
Think of it like this that at the time of retirement, your total job is 33 years and the last basic salary is 50 thousand rupees. In such a situation, under the existing system, the pension will be calculated on the basic salary of maximum 15 thousand rupees. In this way, according to the formula (33 years + 2 35/70×15,000), you will get a pension of Rs 7,500. In the current situation, this is the highest pension ever. But if you chose the option of higher pension, then according to the last basic salary (33 years + 2- 35/70×50,000) you will get a pension of Rs 25,000.
How to make up for the lower contribution earlier for opting for higher pension?
To compensate for the earlier low contribution, it is important to keep in mind that more contribution will not be needed for higher pension only till you retire from now. Employees selecting this option will have to make additional contribution for previous years as well. This additional contribution would be applicable from the time the actual salary exceeded the notified limit of Rs 5,000 and Rs 6,500.
Employees who have sufficient amount in their EPF account will not face any problem. The earlier lesser contribution will be compensated from their EPF balance. But, due to withdrawal of money or other reasons, those who do not even have the minimum amount in their EPF account, they will have to pay for it out of pocket.
Those who have not contributed to EPF till 1st September 2014 can also apply?
If you also want to apply for higher pension of EPS, then you can apply keeping these three conditions in mind.
1. Employees working in such an organization which was not covered under the EPF Act.
2. Employees who were not in service but did not withdraw money from EPF or EPS or both.
3. Employees who had closed EPF account but could not close EPS account. This happens when an employee continues to have an EPF account continuously for more than 10 years. In such a situation, he cannot withdraw lump sum amount from EPS. Such people are entitled to get pension after the age of 58 years.
