EPFO Pension Increase: Private employees may get good news before Diwali, EPFO pension to increase
This Diwali, the EPFO is expected to increase the Employee Pension Scheme. The ₹1,000 contribution under the Employee Pension Scheme could now increase to ₹2,500.
EPFO Pension Increase: Private employees are expected to receive some good news this Diwali. It’s expected that the Employees’ Provident Fund Organization (EPFO), which is run for the betterment of employees, may increase the minimum pension amount under the Employee Pension Scheme.
In fact, the EPFO’s Central Board of Trustees was scheduled to meet in Bengaluru on October 10th and 11th. This meeting is expected to bring good news regarding an increase in employees’ pensions. Employees are still awaiting further information from the EPFO.
What is the current pension amount?
According to employees, the minimum pension amount under the Employee Pension Scheme is too low. The minimum pension amount under the Employee Pension Scheme (EPS), established in 2014, is ₹1,000 per month, and employees have been demanding an increase. According to media reports, a recent meeting is expected to increase this amount from ₹1,000 to ₹2,500. This increase in pension amounts will provide significant relief to employees and fulfill their long-standing demand.
Why is there a demand for increasing pension?
Employees say that the ₹1,000 they receive from the pension scheme is insufficient given the changing times and the current market inflation. Trade unions and pension benefit unions have long demanded an increase to ₹7,500. However, according to reports, the Central Board of Supervisors has flatly refused to increase the pension by 7.5 times.
How is EPFO pension decided?
The EPS scheme also has its own method for calculating pension. The formula is (pension = pensionable salary × pensionable service) ÷ 70. This includes pensionable salary, the average salary of the last 60 months, and pensionable service, the number of years of service contributed to EPS. The maximum salary limit for receiving a pension is ₹15,000 per month. Additionally, a minimum of 10 years of service is required to benefit from this scheme.
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