7th Pay Commission: The Modi government at the center is making a big plan regarding the salary and pension of the employees. If the government implements this plan, then there can be a bumper increase in the salary (Salary Update) and pension (Pension Update) of the employees. At present, the minimum basic salary of the employees is Rs 15,000 and on this contribution is made for pension and PF.
The Modi government at the center is making a big plan regarding the salary and pension of the employees. If the government implements this plan, then there can be a bumper increase in the salary (Salary Update) and pension (Pension Update) of the employees. According to media reports, it is being considered to increase the minimum basic salary of employees under the Employees’ Provident Fund Organization (EPFO). At present, the minimum basic salary of the employees is Rs 15,000 and on this contribution is made for pension and PF. It is being considered to increase the minimum basic salary to Rs 21,000. If this happens, the money deducted for pension and PF will increase.
Rs 21,000 will be the minimum basic salary
At present, the minimum basic salary of the employees is Rs 15,000, a decision has to be taken on increasing it to Rs 21,000. With the increase in the minimum basic salary, the contribution towards PF and pension will increase. It is being said in the media reports that the increase in basic salary will automatically increase the pension.
The government had increased the minimum salary in the year 2014.
The last time the central government increased the minimum basic salary was in the year 2014. Then the basic salary of the employees was increased to Rs 15,000. Now the government is considering increasing the minimum basic salary once again. With the increase in salary, the share of pension and PF will automatically increase. Along with this, the salary will also increase. The allowances received along with the basic salary will also increase.
Now this is how the contribution for PF is calculated
At present, the calculation of pension and PF is done on the minimum salary of the employees at Rs 15,000. At present, a maximum contribution of Rs 1250 is made in the EPS account. The contribution will increase to Rs 1749 per month if the basic salary of the government is increased to Rs 21,000. That is, it will be 8.33% of Rs 21,000. With the increase in pension, the money received after retirement will also increase. With the increase in the basic salary, the salary that comes to hand will also increase because the allowances will also increase. Allowances are also calculated on the basis of basic salary.
