Pension Rule: EPFO is going to link the pay scale with 21000 higher pay scale under Employees State Insurance Corporation. This will give double benefit to those employees, whose monthly salary is up to Rs.21000.
EPFO Pension New Rule: If you are taking advantage of the pension scheme of Employees Provident Fund Organization (EPFO), then there is great news for the employees-pensioners. The Central Government may soon increase the salary limit of the Pension Scheme ( Pension Yojana ) of the Employees’ Provident Fund Organization (EPFO). EPFO is going to link Pay Scale with 21000 Higher Pay Scale under Employees State Insurance Corporation. This will give double benefit to those employees, whose monthly salary is up to Rs.21000.
At present, the salary limit for Retirement Saving Scheme in EPFO’s Employees’ Provident Fund (EPF) scheme is Rs 15,000 per month, it is set to be increased to Rs 21,000. If the government gives approval for this, then 75 lakh more employees will come under the purview of EPFO. Now their number is 6.8 crores. The salary limit was last raised in 2014 from Rs 6,500 per month.
According to sources, an expert committee can be constituted soon to increase the salary limit, which will fix the limit according to inflation. It will be reviewed from time to time to come under the purview of EPFO. Now Rs 15,000 at the rate of 12% on monthly salary is Rs 1,800. If the salary limit is increased to Rs 21,000, then the PF contribution at 12% rate will increase to Rs 2,520. This will increase the retirement fund. Due to which pensioners can get the most benefit.
Interest is received from EPFO
Explain that under this scheme, 12% amount is deducted from the salary of the employee and deposited in the pension scheme and the company has to deposit the same amount in the employee’s account. Means the savings of the employee will double in 1 day. After this, interest is received from EPFO which is more than any bank FD.
The court had canceled this limit
Significantly, the Center currently pays around Rs 6,750 crore every year towards the Employees’ Pension Scheme of EPFO, with the EPFO contributing 1.16 per cent of the total basic salary of subscribers towards the scheme. Recently, the Supreme Court upheld the validity of the Employees’ Pension (Amendment) Scheme of 2014, although the court struck down the limit of Rs 15,000 monthly salary for joining the pension fund.