Organized sector companies coming under the ambit of EPFO have to provide benefits of EPF (Employee Provident Fund) to their employees. The contribution from both the employer and the employee in EPF is 12-12% of the employee’s basic salary + DA. Of the company’s 12 percent contribution, 8.33 percent of the Employee Pension Scheme goes to EPS.
According to information received by sources from CNBC Awaaz, EPFO can get pensioners an increased pension gift on Diwali. According to sources, the Finance Ministry has agreed to the proposal of the Ministry of Labor to increase the minimum pension. The announcement of doubling the minimum pension may be done soon due to the proposal of the Ministry of Labor.
Pension can be doubled: According to sources, the minimum pension can increase from Rs 1000 to Rs 2,000. This was approved by the Central Board of Trustees (CBT-Central Board of Trustees) in 2019. Now there is a demand to increase the minimum pension of CBT to Rs 2,000-3,000. The government will incur a burden of 2000-2500 crores on doubling the pension. About 60 lakh pensioners will benefit from this increase.
Let us tell you that the employees working in the organized sector of the private sector can also get the benefit of monthly pension after retirement, for this, the Employee Pension Scheme, 1995 (EPS) was introduced. Under the EPF Scheme, 1952, 8.33 percent of the 12 per cent of the employee’s contribution to EPF by the employer goes to EPS. After the age of 58, the employee can get the benefit of monthly pension with EPS money.
How much money can one withdraw from EPS account?: The earlier the 10 years, the less the years of service, the less amount you will be able to withdraw. Saraswati Kasturirangan, partner at Deloitte India, says that the lump sum withdrawal from the EPS scheme is allowed only if the years of service are less than 10 years. The amount refunded to you will be based on Table D given in the EPS Scheme 1995.
What happens if you withdraw money from EPAF account on leaving the job? Under the EPF scheme, the member has the option of withdrawing the entire amount and closing the account upon leaving the job. On closing the account (being unemployed for more than 2 months), one time the entire amount can be withdrawn from the EPF and EPF account (the condition is that the years of service are less than 10 years).
(With inputs from news18.com)