The government of India has brought good news for thousands of employees working in the private sector. If Supreme Court permits, the pension of employees may increase by at least Rs 8,500. Read further to know how much the salary of these central employees will increase by this decision of the Supreme Court.
The Employees’ Provident Fund Organization (EPFO) has fixed a limit of Rs 15,000 on the basic salary of lakhs of employees working in the private sector and on the basis of this- pension is calculated. But, after this decision of the Supreme Court, this limit will be removed and the pension will be calculated at Rs 20,000 instead of Rs 15,000. If this happens, then the monthly pension of the employees may increase by at least Rs 8,500.
New Rule Of EPF Pension Hike
EPFO has fixed a limit of Rs 15,000 for each employee. Even if an employee’s basic salary is Rs. 50,000 or more, the PF on the salary will be calculated within Rs. 15,000 only.
However, if an employee earns more than Rs. 50,000 and wants to have his pension calculated on his/her’s current salary, will not be able to do so as EPFO has set a limit of Rs. 15,000 in the new rule.
Pension May Increase After Removing Salary Limit
A hearing on this matter is still going on in the Supreme Court. If the SC removes the salary limit, then PF will be calculated at the highest level. If the basic salary of the employees is more than Rs. 15,000 then the PF money will be deducted at the highest level.
Whatever the Supreme Court’s decision is, it will highly benefit the employees working in the private sector.
The Employees Pension Revision Scheme was notified by the Central Government on 1st September 2014. At that time, employees of the private sector opposed the scheme. EPFO then filed an SLP in the Supreme Court and following this the highest court of appeal decided to hear the case.
The court said, during the hearing of EPFO’s SLP, that the employees who are contributing on the basis of their actual salary are actually depositing with their company in the form of a joint option.
Read More: Good News for pension holders! EPF Pension likely to hike by Rs 8,500