Good News For EPFO ​​Members! Penalty Will Not Be Imposed On Delay In EPF Payment, Companies May Get Big Relief

There is good news for millions of The Employees Provident Fund Organization (EPFO) ​​members, employees. The EPFO has increased the monthly salary limit to join the scheme. Till now this limit used to be Rs 6,500 per month, which has now been increased to Rs 15,000 per month. With this, the benefit of the pension scheme will not be given to all those people whose monthly salary was more than Rs 15,000 at the time of joining the scheme.

The basic salary and dearness allowance (DA) are added to the salary for the purpose of EPS scheme i.e. Employee Pension Scheme. As a result of this, according to the changed rules, if an employee’s basic pay i.e. basic salary and DA together becomes more than Rs 15,000 per month, then he will no longer be eligible for Employee pension scheme (EPS). The EPS is a social security scheme mainly for the benefit of the employees. It is run by the Employees Provident Fund Organization (EPFO). The scheme provides pension to those employees who are employed in the organized sector at the age of 58. The benefit of this scheme is given only to those who have been employed for at least 10 years. The special thing is that it is not mandatory to have continuous service time in it.

So many benefits of EPS

A member of the scheme becomes eligible for pension benefits after retiring at the age of 58 years. If a member has not been in service for 10 years before the age of 58, he can withdraw the entire amount by filling Form 10C at the age of 58, but will not get the monthly pension after retirement. An EPFO ​​member who becomes permanently disabled will receive a monthly pension, even if he has not done the required 10-year job.

Eligibility to join EPS

First of all, you must be a member of EPFO ​​Member.

– Your job must be completed for at least a decade i.e. 10 years.

– It is mandatory to have an age limit of 58 years.

– If you are 50 years old, then till this age limit, you can withdraw your EPS amount at lower rates.

In this scheme, you can also postpone your pension till the age of 60 years. After doing this you will be paid pension at an additional rate of 4 percent per year.

How to calculate pension

After retirement, how much pension you will be given every month under EPS depends on how much your salary amount has been eligible for pension. Also, for how many years you have given pensionable services. Monthly pension amount of any PF account holder member is calculated by this formula. In this, pension = Salary X is made on the basis of year of service / 70. The pensionable salary of any PF account holder is equal to the average of his monthly salary of one year i.e 12 months. Similarly, the actual service period of a member of EPFO ​​is considered as pensionable service of that employee. When calculating the eligible service term of pension, the period of service i.e service period with many companies and employers is added.