Following the Supreme Court's decision dated 4 November 2022, EPFO issued a circular of guidelines regarding pension on 29 December 2022. After that, explanation issued on it again on January 4, 2023, according to that-
1) On 1st September 2014, the way to get pension on actual wages for retired employees who were working and after that.
2) According to the Supreme Court, whose EPS deduction is ₹5000, ₹6500 and ₹15000 maximum salary has been assumed. They will have to deposit the amount in EPS account by 8.33% on the difference between actual salary and maximum pay. The interest that will be decided on this will also have to pay. For example whose salary is ₹1.00 lakh, he will get 100000-15000=85000 as per 8.33 as per ₹8330-1250 =₹7080 per month and that is ₹ 7080 owner's share. Previous amount will have to be calculated as the actual salary - 5000=difference plus actual salary -6500=difference and return with interest. Similarly, the contribution of the employers received to the employees will also have to return the employers contribution. Interest will have to be paid at the rate the government decides on this amount. This interest will be paid at least 8.5% to maximum 10.50%. It would be wrong to think that the government or EPFO will only make a difference without interest.
3) After that, the Supreme Court has suspended 1.16% share given by the central government for 6 months. If the court raises the adjournment tomorrow, the 1.16% share given by the central government may also have to notice the employees.
4) It is sure that the refund amount of employees will not be adjusted from the arriars as it is huge. This means everyone has to pay cash.
5) Employees who retired in 2014-15, may have the amount payable and the arriars usually be matching. Increased pension will be very beneficial for them. Those who retired in 2020-22 will have a higher pay and less Arriars. However, how many people are capable of paying such a huge amount to the CPF section, this is the question!
6)According to EPFO rule, pension will be applied to an employee who has served above 20 years of service +2 years benefit X salary ÷70.
7) Employee's salary is the amount on which his CPF is deducted.
8) The salary will be decided by the average salary for the last five years while calculating the salary for the pension. For example, the salary of an employee retired in 2018 is ₹52000 in 2015, 54000 in 2015, ₹56000 in 2016, 58000 in 2017 and ₹60000 in 2018, while giving pension, his salary will be assumed. Last salary is not ₹60000.
9) As long as the employee is alive, he will get the pension fixed according to the above number 7. His wife/thusband will get half the amount after his death. Pension will stop when both are gone. The amount deposited by the employee to the CPF will be digested forever in EPFO accounts.
10) Whose nature is good. For those who do not have life threatening diseases. Those who can guarantee to live for at least 10 years, it is very affordable for them to take an extra pension. But patients who have stage 3 cancer, brain hemorrhage, heart bypass etc should consider the alternative to higher pension. Because pension becomes half when the employees leave and even if inflation increases or pay commission sets in, the fixed pension does not increase.
11) Those whose husband/wife is not alive, they should increase. Think ten times before submitting options for pension because after their life pension will be stopped and the money they paid will be deposited by EPFO. My opinion is that the employee who does not have a partner should not struggle to get extra pension. They should put EPFO as much as they could in a fixed deposit in the bank. Currently many banks are giving 8 to 8.5% interest to senior citizens. Accordingly, the deposited amount will be equal to increased pension or five ten percent less interest but they will have a large amount of pay EPFO as per the case 20 to 40 lakhs will be safe.
Posts
0 Comments