EPS Pension Increase in 2023: Employees’ Provident Fund Organization subscribers can get relief soon in the Supreme Court.
Actually, with the decision of the Supreme Court, the pension of the Employees Pension Scheme (Employee Pension Scheme) of lakhs of employees contributing to the Employees’ Provident Fund (EPF) can increase by up to 300% in one stroke! EPFO has fixed the maximum salary for EPS pension of employees at Rs 15 thousand (basic salary). Now the Supreme Court can abolish this salary-limit of Employees’ Provident Fund Organization.
The matter is sub judice and hearing is going on continuously. In the Employee Pension Scheme of the employees, the pension can also be calculated on the last salary i.e. higher salary bracket. With this decision of EPFO, employees will get many times more EPS pension. Explain that it is necessary to contribute to EPF for 10 years to get pension. Whereas, after completing 20 years of service, a weightage of 2 years is given.
How will your Employee Pension Scheme pension increase?
According to the existing system of Employees’ Provident Fund Organization, if an employee is working from June 1, 2015 and wants to take pension after completing 14 years of service, then his Employee Pension Scheme (Employee Pension Scheme) Pension will be calculated at Rs 15,000 only, even if he is working with an EPS employee. Salary 20 thousand rupees.
Be it in the basic salary bracket or Rs.30,000. According to the old formula, on completion of 14 years, the employee will get a pension of about Rs 3000 from June 2, 2030. The formula for calculation of pension is (service history x 15,000/70). But, if the Supreme Court decides in favor of the employees, then the pension of the same employee will increase.
Example of increase in Employee Pension Scheme
Suppose the Employees’ Provident Fund Organization subscriber’s job is 33 years. His last basic salary is 50 thousand rupees. Under the existing system of Employee Pension Scheme, pension was calculated only on a maximum salary of Rs 15,000. In this way (Formula: 33 years+2= 35/70×15,000) the pension would have been only Rs 7,500. This is the maximum EPS pension in the current system. But, after removing the limit of pension, adding the pension according to the last salary, he will get a pension of Rs 25000 thousand. Means (33 years+2= 35/70×50,000=Rs 25000).
What is the whole matter of Employee Pension Scheme
The Employees Pension Scheme (Employee Pension Scheme) Amendment, 2014 was implemented by the Central Government by issuing a notification from 1st September 2014. This was opposed by private sector employees and was heard in the Kerala High Court in the year 2018. All these employees were covered by the facilities of EPS EPF and Miscellaneous Provisions Act, 1952.
The employees protested against the rules of the Employees’ Provident Fund Organization, saying it ensured them less pension. Because the salary may be more than 15 thousand, but the calculation of EPS pension has been fixed on a maximum salary of 15 thousand rupees. However, before the revision made by the central government on 1 September 2014, this amount was Rs 6,500.
Considering the rules of the Employee Pension Scheme as unfair, the Kerala High Court had given its verdict while accepting the writ of the employees. On this EPFO filed an SLP in the Supreme Court, which was dismissed by the Supreme Court. Now this matter is being heard again. Employees’ Provident Fund Organization (Employees’ Provident Fund Organization) employees can get good news soon!
