EPF Update- Employees working in private companies are always tensed about pension. Because the way government employees get a good pension after retirement, private employees do not get that much. But now the news is that employees working in private companies will now get a minimum pension of Rs 7500. Right now it is Rs 1000. However, there is a lot of discussion about increasing it.
Minimum pension will increase under the Employees’ Pension Scheme
The Employees Provident Fund Organization (EPFO) runs the Employees’ Pension Scheme (EPS) for private employees. Whoever’s PF is deducted, a part of it goes as pension which is deposited in EPS. The Employees’ Pension Scheme was started in 1995. Employees Pension Scheme is managed by EPFO. EPFO gives pension to its members through this.
However, to get pension, it is mandatory for the employees to deduct PF for a minimum of 10 years. If you are a private employee and you have deducted PF for 10 years, then you will be entitled to get pension. Your pension is given on the basis of your salary. Currently the minimum pension is Rs 1 thousand. There is a discussion of increasing it to Rs 7500.
EPFO has made complete preparations
According to media reports, EPFO has made all the preparations for this. Soon the government can approve this proposal. PF pension is available after 58 years. The retirement age of employees in private companies is 58 years. However, the company can also extend this service period.
According to reports, if the minimum pension becomes Rs 7500, then it will provide relief to about 78 lakh pensioners. The government can also increase Dearness Allowance (DA) in this pension.