In a historic move toward ensuring post-retirement security of employees in the private sector, a new pension scheme has been introduced by the Employees’ Provident Fund Organization (EPFO), under which eligible private employees will be able to get ₹9,000 or more every month. The scheme backs the long-term vision of the Government: dignified retirement for private sector employees.
Future Changes
EPFO plans to have a revision of the minimum monthly pensions under the Employees’ Pension Scheme EPS-95-with a proposal to enhance the base pension from ₹1,000 to ₹9,000. This long-awaited hike in the pension amount will certainly benefit millions of private-sector workers, especially the ones who are nearing retirement.
Revised amounts will also be determined based on the additional contributions and the years of service, while the government may co-contribute some part of the additional pensions for the better sustainability of this scheme.
The Simple Qualification Steps
Essentially, your pension has a minimum qualifying amount of ₹9,000 if you go for higher pension contributions. EPFO has reintroduced the arrangement whereby employees can contribute a higher share of their basic salary, beyond the ₹15,000 cap, into the pension scheme.
The Following Are The Steps:
- Login into the EPF Member Portal with your UAN.
- Further, under “Pension”, select the “Higher Pension Option”.
- Co-initiate the request (with approval from your employer) for a higher pension contribution.
- Upload salary proof and e-verify.
Once approved, your future pension will be calculated based on your actual last drawn salary instead of the capped ₹15,000, thereby greatly improving your monthly benefits due at retirement.
Who Benefits From This?
- Employees of the private sector under EPS-95
- Those who have worked for a minimum of 10 years and make contributions through the EPFO
- Workers who wish to make contributions based on their actual wage
Support From The Government
The government, will probably, withhold its coffers for another subsidy, or try to tweak the EPS construct toward ensuring viability.
Conclusion
According to the EPFO’s scheme, this will be a game-changer for private sector employees alongside offering financial tranquillity in retirement. Seize this unique opportunity to secure that higher pension should you be eligible.
Also Read: Good News: 50 Lakh Employees And 65 Lakh Pensioners To Get Major Benefits