After one important decision given by the country’s Supreme court in 2016, a pensioner’s pension has increased by not 10, 20 or 50 percent, but instead of 1200 percent. Yes, you might have been shocked by hearing this, but this is hundred percent is true. Because the court asked the EPFO (Employee Provident Fund Organization) to revive the pension of 12 petitioners under Employee Pension Scheme (EPS).
After this order of the court, Praveen Kohli’s who has been retired from Haryana Tourism Corporation will get increased pension by 1200 percent and where his pension was earlier Rs 2,372, the pension has now increased more than 10 times to Rs 30,592. Pravin Kohli’s salary in 37 years of service has never been increased so much, as much as 4 years after retirement, the pension amount has happened.
Actually, there are about 50 million pensioners under the Employees Provident Fund (EPF). At the same time, every employee of the private sector deposits 12% of his basic salary and the dearness allowance in the EPF. After that, the employer also collects the same amount. The employer goes for 8.33% of the EPS from the fund. When people withdraw EPF, they are not given EPS. Payment is done only after retirement.
There is also a limit on EPS contribution, which currently has a limit of 15,000 rupees per month (Basic + DA). Therefore, no one can deposit a maximum of 8.33% of the 15 thousand rupees for the EPS, which is Rs 1250. From July 2001 to September 2014, the limit of EPS contribution was Rs 6,500. In this case, the maximum EPS of Rs 541.4 can be contributed. The same amount was Rs 5000 before 2001, according to which the contribution could have been Rs 416.5.
In Praveen’s case, he had to pay Rs 15.37 to get his pension from Rs 2,372 to Rs 30,592. This was the amount that Kohli wanted to pay for EPS contribution on his entire salary, but he also got 13.23 lakh rupees as Array of Pension. In such a way, paying only 2.14 lakh rupees gave Kohli an opportunity to manifold his pension several times.
In this case, all 5 crore members of EPFO are now eligible for a higher pension. This includes all the people who joined the EPFO before September 1, 2014. On this date, EPFO had put a cap of Rs 15,000 in EPS.