Know how the pension will increase with the new rule of EPFO.
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₹ 1250 per month in EPS account with an income of ₹ 15000,8.33% of the employer's contribution to the employee's pension fund.
According to the new rule, the income of 40,000 thousand will be calculated₹ 1468 deposited in EPF, ₹ 3332 in EPS under higher pension rule.
Employee Contribution to EPF- 12% Basic Income+DA
Only 12% contribution from the employer.Total contribution of 24% in EPF account every month
Of the 12% employer contribution, 8.33% goes to EPS
EPS- Employee Pension Scheme
3.67% of 12% goes to the employee's EPF account.
Tenure - 35 years
Current rule- (15000*35)/70= 7500/month
New rule- (40000*35)/70=20,000/month
EPS-Advantages of Higher Pension
Benefit of higher pension on retirement.
More benefits on having more basic income
Social security will be strong after retirement.