EPFO provides many types of hike in lifetime pension help people even after retirement. EPFO gives many pensions Schemes gives benefits to employee who maintains accounts under Employees Provident Fund. This article will help you to know the benefits given by the EPFO office.
What is EPFO?
Their main Aim is to expand and provide financial security to the people when they grow old. It is one kind of income source to the people who are at home after their retirement. After the death of Employee money will be given to nominee or else other members of the Family in the form of Provident Fund. You can also check for PF office Haryana Address, Email, Contact no and Location-EPFO
What is EPF and how can you Hike
According to EPF, employer has to give 12% of his basic salary of an employee into the EPF
From total amount, 8.33% will go to EPS.
If you are earning every month on EPF is Rs 15,000 a month. Then EPS will take every month around Rs 1,250.
According to 1996 amendment, EPF Act gives an option to employees to raise the pension payment to 8.33% of their salary (basic+DA).
To increase the payments to EPS, if you want to apply EPFO then have to submit an approval letter from the employer.
As per, Supreme Court decides to make EPFO as an important to allow higher contribution to EPS. Every person who is going to retired will also accept this.
After few years EPFO will also stopped accepting requests for the payments to the EPS.
Not smart with capping
If the contribution and pension are protected, EPS is not a very good theory for the subscribers. Example if a person a person joined a scheme in 1996 at that time his basic salary was Rs 6,000 and he got an average increment of 8%. When he retires after 33 years, his payments to EPS would be worth Rs 12.93 lakh. Calculations are based on profits offered by EPF from 1996 and you will get up to 8.5% of returns in future.
However, after retirement every month he will get pension only of Rs 5,182. If he receives pension for 25years while his retirement then profits from EPS every year he will get 1.52%.
If an Employee is going to contribute 8.33%of his total salary then depending upon that basis he will get profits, and income from the EPS will be at 11-12%.
What else does EPS OFFER?
Employee pensions Scheme will offer many benefits to employee come under Employees Provident Fund.
retirement fund to member and spouse
Pension will starts at the age of 58 and it will be given back based on the number of the years of service done by an employee and the basic salary. Check for Check EPF balance by UAN number UAN passbook | EPF balance passbook
Pension to Widow
If an employee dies during his service, then his wife will get a Widow pension throughout his life and this facility will be given to that widow till she remarries. If he has two children then they will get additional fund depending up on the sum equal to 25% of the pension.
Pension for Orphans
If there is no Widow, and they have two children then they will receive 75% of the pension till they come to the age of 25. If they have more than 2 children they will receive the pension till the youngest one becomes to the age 25.
During service if a person is totally disabled then he takes full pension without any decrements throughout his life.
If a person wants to take his pension early after 50, every year he will get 4% decreased from his pension till his age reaches to 58.
Excepted Organizations kept out
If EPFO hesitate to give pension on full salary to employees not likely companies then they will manage their provident funds to be separately.
Out of 12 petitioners only two has won the case in Supreme Court, EPFO accepted higher position to these members and even private employees also demanded to get pensions on full salary if they won’t get the pension on full salary they will move to court.
EPFO says that adjustment is possible only if both the EPF and EPS fund are managed by EPFO trust. If the Provident Fund of Organisation is not with EPFO Trust, it is not possible to transfer money from the separate EPPF accounts to EPS.
Who is eligible?
Five crore EPFO members are now eligible for higher pension, people who joined before 1st September 2014 and salary is of Rs 15,000 they should pay their full salary to EPS. They can submit their applications to their companies and EPFO and get up to half of their average monthly salary as pension. Those who joined after 1st September 2014 and they take salary of Rs 15,000 they are not eligible for pension whose basic salary is lower than Rs. 15,000.
According to September 2014 improvement they changed the way of calculation of EPS pension. Some people who are going to retire are trying for the better pension on their basic salary.