Pension Holders: Good news for pension holders! EPF pension can increase up to Rs 8500!

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The Government of India has brought good news for thousands of employees working in the private sector. If the Supreme Court allows, then the pension of employees can be increased by at least Rs 8,500. Read further to know how much the salary of these central employees will increase due to this decision of the Supreme Court.

The Employees' Provident Fund Organization (EPFO) has fixed a limit of Rs 15,000 on the basic salary of lakhs of employees working in the private sector and on the basis of this pension is calculated. But, after this decision of the Supreme Court, this limit will be removed and the pension will be calculated at Rs 20,000 instead of Rs 15,000. If this happens, then the monthly pension of the employees can be increased by at least Rs 8,500.

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New rule for EPF pension increase

EPFO ​​has fixed a limit of Rs 15,000 for each employee. Even if the basic salary of an employee is Rs 50,000 or more, PF on salary will be calculated within Rs 15,000 only.

However, if an employee earns more than Rs. 50,000 and wants to calculate his pension on his current salary, will not be able to do so as the EPFO ​​has set a limit of Rs 15,000 in the new rule.

The pension may increase after the removal of the salary limit

The matter is still being heard in the Supreme Court. If SC removes the pay limit then PF will be calculated at the highest level. If the basic salary of the employees is more than Rs 15,000 then the PF money will be deducted at the highest level.

Whatever the decision of the Supreme Court, the employees working in the private sector will benefit greatly.

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The Employees Pension Revision Scheme was notified by the Central Government on 1st September 2014. At that time the private sector employees opposed the scheme. Thereafter the EPFO ​​filed an SLP in the Supreme Court and thereafter the Supreme Court of Appeal decided to hear the matter.

The court, during the hearing of EPFO's SLP, said that the employees who are contributing on the basis of their actual salary, are actually depositing it with their company in the form of a joint option.