Now, it took place 3 days from the first day of the year, i.e. the year 2025. This year promises to bring the continued announcement of schemes for employees and citizens as many public welfare schemes have been announced in the first place itself. Latest to come in is private employee updates. It is said that budget is going to give great gifts for private employees.
According to reports, the government is almost done with their plan of increasing the basic salary in EPFO. This makes the announcement that would formally bring forth this development in February as an addition to the budget presentation, though as of now, no government official has confirmed this.
Made this rule
Newly added in EPS by EPFO the rule under which pension of employees becomes doubled. According to a media report, hearing at the Supreme Court is taking place on the lifting of limit of Rs 15000. Employees will have nothing less than a party once the limit is decided upon.
Besides, this is most likely also to be taken up in the budget session. As soon as the decision comes, the government is preparing to increase the basic salary to Rs 210000. In that case, even on basic salary, at least Rs 8571 would be the amount of pension in hand of the beneficiary. EPFO has launched a new update for it.
What is the issue regarding the removal of the EPS ceiling?
Before really going ahead with this, let’s understand what the matter is entirely about. The limit on the maximum pensionable salary at present is Rs 15,000 per month. It means that regardless of how much salary you draw, the pension will be calculated only on Rs 15,000.
The issue is now in the courts for the removal of this limit. On August 12, 2022, last year, Supreme Court had adjourned the hearing of batch of petitions filed by the Union of India and the Employees’ Provident Fund Organization (EPFO), which said that the pension of employees cannot be restricted to Rs 15,000. Rules regarding pensions at present .
It should also be mentioned here that from the day we actually join a job, we become members of (EPF). Of his salary, the employee gives (EPF) 12 percent while the same amount is also given by his company but a fraction of it 8.33 percent also goes to EPS. As related above, presently the maximum pensionable salary is only Rs. 15000, which means that every month the highest pension portion (8.33 % of 15000) stands to Rs 1250.
When an employee retires, the maximum salary is considered to be 15000 rupees for the purpose of calculating pension, under this only 7500 rupees would be available to an employee as maximum pension under EPS. Discussion is on on increasing it. When the limit of 15000 rupees ends, your pension will reach you almost double.
