BUSINESS
EPFO: There has been a major change in the rules, now after the age of 58, pension will be given every month for life
With the Employees' Provident Fund Organisation (EPFO) increasing the salary limit for provident fund coverage from Rs 15,000 to Rs 25,000 per month, employees will receive Rs 20 lakh less on retirement, though they will get the benefit of lifelong pension.
With the Employees' Provident Fund Organisation (EPFO) increasing the salary limit for provident fund coverage from Rs 15,000 to Rs 25,000 per month, employees will receive Rs 20 lakh less on retirement, though they will get the benefit of lifelong pension.
This move by the EPFO has resulted in a portion of employees' contributions being diverted directly to the pension scheme (EPS). A portion of these employees' employer contributions will now go toward pensions instead of PF accounts. This will reduce the total lump sum PF fund received at retirement by approximately ₹20 lakh.
However, in return, employees will receive approximately ₹9,600 per month for life, starting at age 58. It should be noted that the central government increased the salary limit for PF coverage from ₹15,000 to ₹25,000 this year. This change by the central government has now come into effect automatically.
PC: oh yeah
