There are a few things that every private employee must learn to avoid any problem. It is known that employees of PF, part of the salary deposited in the EPF account, do not face any issues. The EPFO has come out with a new scheme for employees who are enrolled under the PF, which would provide monthly pension benefits. The scheme which has been introduced to provide a pension for PF employees is known by the name EPS.
Apart from that, there is another benefit which is the monthly pension provided under the EPS scheme. Well in a nutshell, If your paycheck cuts from your salary, Under what clause are you entitled to the benefit of pension? You would much likely clear out all doubts and confusions through this knowing about all these. EPS would not be that much of a struggle to enjoy. This would probably make the latter years in a person’s life enjoyable by pensioning him off on a monthly basis after retirement from service.
Important Things Related To EPS Scheme
In any case, if there is only a single member of PF in the family, he would have to benefit under the EPS scheme. EPS scheme came into effect in 1995 to date when millions of employees joined in it. However, this scheme will be open only to workers in organized sectors. The Eligibility, in fact, is built in terms of completing at least 10 years of service as an employee.
To the employees below fifty-eight years, a pension shall be awarded. Wondering how many thousands of rupees would that be in pension amounts? Actually, PF account gets credited with 12 percent of the basic salary plus DA. It has also provided with the same amount for the company.PF account of the employee receives part of their share made by the employer.
Out of the share made by the employer, 8.33 percent is allocated for employee pension trust, and 3.67 percent will be invested into the PF account. Now, according to the existing regulations, the monthly salary that can be considered for pension is limited to Rs 15000. Now, in that case, the pension amount will be equal to that Rs 15000 x 8.33/100 = 1250/- per month.
How Much Will Salary Be With Respect To Current Rules Of EPF?
If one starts working at 23 years of age and continues till the age of 58, that becomes a working duration of 35 years. Under the old scheme, for contributory pension schemes, the pensionable ceiling limit is Rs.15000. The formula states the Monthly pension will be Salary multiplied by Service divided by 70, and it is 15000 x 33/70 = 7500 Rs per month pension.
Also Read: TVS Bike Will Be Launched Soon With New Look And Great Features, See Details