Employee Pension Scheme: After working for 20 years, employees will get monthly pension of Rs 4286
Contents News/Article Date: 23rd September 2023
Relating to which Act: The Employees Provident Funds & Miscellaneous Provisions Act, 1952;
Penalty under the Act: Whoever, for the purpose of avoiding any payment to be made by himself under this Act [the Scheme, the [Pension] Scheme] or the Insurance Scheme] or of enabling any other person to avoid such payment knowingly makes or causes to be made any false statement or false representation shall be punishable with imprisonment for a term which may extend to one year, or with fine of five thousand rupees, or with both].
Applicable to which State: Whole of India
Type: Business League News Report
Pertains to: Employer and Employee
Relevance of this news: Karma Global is in the business of HR Services, Payroll, Outsourcing and Regulatory Compliances right from its inception in 2004 and since then, has brought in a lot of efficiencies and technological upgradations with experts on its roll, to ease the hassles of Payroll Processing, Temp Staffing, On-boarding, Employee Life Cycle, Statutory, Regulatory and Payroll compliances by providing customized solutions to all its elite clients.
Now Karma Global is also fully into labour compliances for nearly 18 years and is helping both establishments and workers for fulfilment of obligations as per the laws of the land. It has over 200 staff, both direct and indirect on its rolls and operates on pan India basis. Recently, it has diversified into foreign shores as well, into countries like US, UK, UAE, Canada, Philippines, and Asia for handling payroll, outsourcing, recruitment and governance.
And in the current instance EPFO: EPFO provides many types of facilities to the employees working in the private sector. EPS is a pension scheme run by EPFO. Under this scheme, after working for twenty years, employees get a monthly pension of Rs 4286.
Employee Pension Scheme: EPFO provides many types of facilities to the employees working in the private sector. EPS is a pension scheme run by EPFO. Actually, every month 12 percent of the employee’s basic salary + DA is deposited in the PF account. The employer’s contribution is also the same.
Out of this, 8.33% amount goes to the employee’s pension fund (EPS Fund) and the remaining 3.67% amount goes to the PF account. After the age of 58 years, the employee gets the amount deposited in the PF account in lump sum, but his PF amount is decided under a formula based on his contribution. Let us tell you what that formula is and how much pension you will get after retirement? Know its calculation here.
Subject: Employee Pension Scheme: After working for 20 years, employees will get monthly pension of Rs 4286.
Appended is the complete news item
Employee Pension Scheme: After working for 20 years, employees will get monthly pension of Rs 4286.
EPFO: EPFO provides many types of facilities to the employees working in the private sector. PS is a pension scheme run by EPFO. Under this scheme, after working for twenty years, employees get a monthly pension of Rs 4286.
Employee Pension Scheme: EPFO provides many types of facilities to the employees working in the private sector. EPS is a pension scheme run by EPFO. Actually, every month 12 percent of the employee’s basic salary + DA is deposited in the PF account. The employer’s contribution is also the same.
Out of this, 8.33% amount goes to the employee’s pension fund (EPS Fund) and the remaining 3.67% amount goes to the PF account. After the age of 58 years, the employee gets the amount deposited in the PF account in lump sum, but his PF amount is decided under a formula based on his contribution. Let us tell you what that formula is and how much pension you will get after retirement? Know its calculation here.
This is the pension formula-
The formula for how much pension you will get after retirement is – Monthly salary of the employee = Pensionable salary According to the current rules, 8.33% of the salary of any employee is deposited in his pension account. However, the maximum limit of pensionable salary is Rs 15 thousand. In such a situation, if a person’s salary is Rs 15000, then Rs 15000 X 8.33 /100 = Rs 1250 will go to his pension account every month.
Now if the calculation is done according to the pension formula, then if someone’s monthly salary (average salary of the last 60 months) is Rs 15 thousand and the tenure of the job is 20 years, then the monthly pension will be 15000X 20/70 = Rs 4286. Whereas if the tenure of a person’s job is 25 years, then his monthly salary will be Rs 15000 If the limit of Rs 15 thousand is removed and your salary is Rs 30 thousand, then the pension you will get as per the formula will be this. (30,000 X 30)/70 = 12,857
These are the necessary conditions for pension-
- Must be an EPF member.
- It is necessary to remain in the job regularly for at least 10 years.
- You get pension after turning 58 years old. Option to take pension after 50 years and even before the age of 58.
- If you take pension earlier, you will get reduced pension. For this, Form 10D will have to be filled.
- On the death of the employee, the family gets pension.
- If the service history is less than 10 years then they will get the option to withdraw the pension amount at the age of 58 years.