EPFO News: If you contribute to the EPFO pension scheme while working in the private sector, your future will be happy. The government runs the EPS scheme to increase the future wealth of PF employees. Under this scheme, PF employees will get pension after retirement.
Pension can easily meet your monthly expenses. To get the full benefit of your pension, it is important to understand some key points that will clear any confusion. Private sector employees deposit 12 percent of their salary in the EPS account. This money is regulated by the EPFO.
The company divides the PF into two parts. The first part i.e. 8.33 percent of the money goes to the Employee Pension Scheme (EPS), while 3.65 percent goes to the EPF scheme. Under this scheme, since 2014, the central government has fixed a pension of Rs 1000 under EPS-1995. However, now the long-standing demand of making the minimum pension Rs 7500 is likely to get approval.
Important rules related to pension eligibility
According to EPS, an employee gets pension only if he has worked for at least 10 years. Pension cannot be given without ten years of service. The EPS-95 NAC Committee says that the government should understand its responsibility that the pension of PF employees should be at least Rs 7500 per month.
Apart from this, there is also a demand that the elderly should get dearness allowance and free medical facility. The headquarters of EPS-95 National Struggle Committee is in Maharashtra.
How will the pension become Rs 7,500 per month?
If an employee wants to get a pension of Rs 7500 per month after retirement, then EPFO’s calculation says that ‘a member who joins the Employees’ Pension Scheme 1995 at the age of 23 years and retires at the age of 58 years, and contributes up to the (current) salary ceiling of Rs 15000/- can get around Rs 7500/- as pension, if the service is of 35 years.