EPS 95 PENSION MOST IIMPORATANT INFORMATION How EPFO ​​performs pension calculation, how to get more amount, know whether tax law will apply on pension

According to the Employees Provident Fund Organization (EPFO) rules, the employee gets pension on the basis of actual basic and DA. This year, the Supreme Court agreed to the decision of the Kerala High Court, ordering the abolition of the limit of Rs 15,000 on basic salary. The Kerala government has made a provision for giving pension to private workers according to their full salary. EPFO was giving pension according to 15000 salary.
Calculation of PF ​​pension pensionable service + 2 years (bonus year) will have to be divided by 70. The number that comes after this will have to be multiplied by its final pensionable salary (Basic + DA). The result that comes after this will be your pension. For example, if a person has worked for 33 years, after accumulating 2, it becomes 35. A number of 0.5 appears after dividing 35 by 70. Multiply this 0.5 by30000 (your last pensionable salary). That is, you will get a total salary of Rs 15,000. Your pension data depends on the year of your service and your final salary.


How to get higher pension: Employees have the option to deposit more in EPS for more pension. Employees desirous of getting more pension will have to divert their EPF amount to EPS. 12% of the basic salary of the employees goes to PF and the employer deposits 12% in his name. Of the company's 12 per cent stake, 8.33 per cent goes to the pension fund and the rest to 3.66 pf. Now its limit has also been extended. That is, employees can increase pension by turning from EPF to EPS.


Whether new tax laws will be applicable on EPS 95 pension: According to the rules, tax laws will be applicable on pension for those with salary above 5 lakh, while tax laws on pension will not apply after retirement of low income.