From 1st September 2014 there have been changes in EPF, EPS and EDLI by Employee Provident Fund Organization (EPFO). This post discusses these changes. New PF rules may lower take-home pay. But increase in the statutory contribution will boost retirement corpus. There is increased Insurance cover if an employee dies in service. The Pension fund has also gone changes and those who started their jobs after 1 Sep 2014 and earn more than 15,000 do not have to contribute to Pension scheme of EPF. The process for transfer of EPF and withdrawal of EPF remain unchanged.
Table of Contents
EPF regulations Before 1 September 2014
Employee Provident Fund (EPF),commonly called PF, is one of the main platforms of savings for retirement in India for salaried class i.e nearly all people working in Government, Public or Private sector Organizations. The tax saving under section 80C, tax-free interest, compounding and the maturity ensures a good growth of our money. Interest rate on EPF is announced every year. In the past several decades, the interest rate has ranged from 8-12 % of the balances maintained in the fund. Our article EPF Interest Rate from 1952 and EPFO, discusses it in detail.
The employer and the employees need to contribute to the EPF from the monthly basic salary plus the dearness allowance towards EPF.The employee contribution is 12% of the monthly basic salary plus dearness allownace. The employer contribution is 13.61 % of the employees’ salary. Employer’s contribution actually gets split into EPF, Employees’ Pension Scheme (EPS) which offers pension on disablement, widow pension, and pension for nominees and Employees Deposit Linked Insurance Scheme (EDLIS) which offers life insurance cover to the PF member. An employee with monthly salary of up to Rs 6,500 was a member under the three schemes . An employee can always invest more than 12% of his basic salary in EPF which is called Voluntary Provident Fund (VPF). Our articleVoluntary Provident Fund, Difference between EPF and PPF discusses it in detail. The Distribution of employer’s contribution is as given below. Our article Basics of Employee Provident Fund: EPF, EPS, EDLIS talks about EPF, EPF, EDLIS in detail.
| Scheme Name | Employee contribution | Employer contribution |
| Employee provident fund | 12% | 3.67% |
| Employees’ Pension scheme | 0 | 8.33% |
| Employees Deposit linked insurance | 0 | 0.5% |
| EPF Administrative charges | 0 | 1.1% |
| EDLIS Administrative charges | 0 | 0.01% |
Our article How to get information about EPF balance : Annual Statement, SMS, E-Passbook and EPF SMS What is EE, ER? How much on Withdrawal from EPF? talks about actually how much would one get.
Change in EPF from September 1, 2014
Change in salary limit for EPF contribution from Rs 6500 to 15,000
The existing salary limit of Rs 6,500 has been increased to Rs 15,000, thereby expanding both membership base and the quantum of contributions.
Now an employee with monthly salary above Rs 6,500 but up to Rs 15,000 will also be covered under the three schemes. Unlike PF and insurance scheme, voluntary membership is not available under the pension scheme for an employee with monthly salary of above Rs 15,000.
With the new salary limit of Rs 15,000 for calculating contributions, the total contributions – both by the employer and the employee will increase. Earlier the contributions were limited on a salary of Rs 6,500. The move to enhance the minimum wage ceiling for becoming a subscriber of Employees’ Provident Fund Organisation to Rs 15,000 per month is expected to bring 50 lakh additional formal sector workers under the ambit of the body. EPFO’s Notice on increase in limit from 6500 to 15,000 This is discussed in detail in the section What the changes in EPF after 1 Sep 2014 mean of our article
Increased Monthly Pension
The government has also fixed monthly pension benefit at Rs 1,000 for the financial year 2014-15 . Those who started job after 1 Sep 2014 and earning more than 15,000 Rs in basic and DA will not be contributing to the Pension scheme.
Under new rules, widow of a member will get a minimum monthly pension of Rs 1,000. For children it is fixed Rs. 250 and orphans it is Rs. 750 per month.To arrive at pension, salary will be average of 60 months last drawn salary instead of earlier rule of last 12 months average salary. The government’s decision to fix pension entitlement of Rs 1,000 under the Employees’ Pension Scheme 1995 (EPFS-95) immediately benefited 28 lakh pensioners.
The entire pension scheme of EPFO was considered to be a pack of cards which may eventually collapse, as the existing and new members are subsidising the pensioners. Today, there are about 45 lakh pensioners while about 2.75 crore members are contributing to the EPFO pension fund. However, this trend is bound to reverse in the next two decades as the population growth and incomes stabilise. Then, there will be a very fast depletion of the fund corpus as the pension based on last pay drawn has no correlation to a member’s contribution, which is less than what he gets as pension. The only difference is that the existing members have to mandatorily contribute and, to that extent, the scheme can be sustained for a bit longer before it eventually collapses. To fix this EPF rules were changed So those who started job after 1 Sep and earning more than 15,000 Rs in basic and Dearness Allowance will not get any pension.
Increased Insurance
Earlier each member who is part of EPF scheme had a insurance coverage of Rs. 1,56,000. This insurance coverage is now raised to Rs. 3,00,000. Actually the amount becomes Rs 3.6 lakh including 20% ad hoc benefit over the prescribed amount of 3,00,000 . This means that in case an EPFO subscriber dies, his family will be entitled to maximum sum assured of Rs 3.6 lakh instead of existing Rs 1.56 lakh
Increase in limit of Employees Deposit Linked Insurance Scheme (EDLIS)
Under the EDLI scheme life insurance cover is provided to the PF members. The cost of the scheme is borne by the employer but as the amount of life coverage under this statutory scheme is very low. Usually employers opt out of the EDLI scheme by going for group insurance scheme which usually provides higher coverage to employees without any increase in cost to the employer. EPFO notice about increase in limit of EDLIS(pdf format)
The changes in EDLI scheme over the years have been as follows:
- In 1976, when the scheme was introduced the benefits were as follows:
- 1. In case of death of an employee while in service, in addition to the accumulated amount of Provident Fund to his credit an additional amount equal to the balance at the time of death subject to a maximum of Rs. 10,000 will be paid to his family.
- 2. For this benefit, all the employers covered under the PF Act, shall contribute 50 paise for every hundred Rupees Salary towards the insurance and one paisa for every Rs.100 salary towards administrative expenses.
- The scheme also provides an exemption clause Section 17(2A), as per which if the employer provides better benefits than that of the EDLI Scheme, then he can discontinue payment of the above contribution of 51 paise per every Rs. 100 salary to the PF authorities, but after getting exemption from the Central Provident Fund Commissioner (CPFC), New Delhi.
- In 1990, the death benefit was made equal to the PF balance upto 15,000. If PF balance was above 15000, the death benefit was equal to 15,000 + one fourth of the amount in excess of 15,000 subject to a maximum of 25,000.
- In 1994, the death benefit was made equal to the PF balance upto 25,000. If the PF balance was above 25000, the death benefit was equal to 25,000 + one fourth of the amount in excess of 25,000, subject to a maximum of 35,000.
- In 2000, the death benefit was made equal to the PF balance upto 35,000. If the PF balance is above 35000, the death benefit was equal to 35000 + one fourth of the amount in excess of 35000, subject to a maximum of 60,000.
- In 2010, the death benefit was made equal to the PF balance upto 50,000, and 40% of the PF balance in excess of 50,000, subject to a maximum benefit of Rs. 1,00,000.
- In 2011 that the death benefit was modified to be calculated as earlier or last drawn salary (with a maximum of 6500) x service with a maximum of 1,30,000, whichever is higher.
To claim EDLI one needs to fill Form 51F and submit it to EPF. Usually the Employer’s help the family of deceased in claiming this amount.
What the changes in EPF after 1 Sep 2014 mean
Nothing changes for those with a monthly salary of up to Rs 6,500, as both employer’s and employee’s contributions will still be mandatory and will be based on actual salary.
Employees with monthly salary of up to Rs 15,000 who have not opted for voluntary membership earlier, will now be required to become members of all three schemes. Whether enrolled prior to or after September 1, both the employer’s and employee’s contributions will be on salary of Rs 15,000 unless an option is availed to contribute on a higher salary.
For Ex, a person who earns a monthly salary of Rs 12,000.
- Earlier he was contributing 12% of 6500 i.e 780 towards PF, now he will have to shell out an 12 per cent of Rs 12,000 Rs 1,440 each month i.e extra Rs 660 every month
- Similarly, even his employer’s contribution will increase to Rs 1,440 every month, which will be allocated as follows: Rs 1,000 (8.33% of Rs 12,000) towards pension Scheme and the balance Rs 440 towards PF. The employer would deposit an additional Rs 60 (0.5 per cent of Rs 12,000) towards insurance scheme.
For employees earning monthly salary exceeding Rs 15,000, the membership of Employee Pension Scheme is voluntary. For new members joining the scheme on or after 1 September 2014, the contribution is required to be made only under the PF and insurance scheme – as such employees are not eligible for membership under the pension scheme. Members limiting monthly contributions on salary of Rs 6,500 earlier will now have to contribute on at least salary of Rs 15,000.
A person earning a monthly salary of Rs 20,000.
- From September 1, his contributions will increase to 12% of Rs 15,000 i.e Rs 1,800
- Employer’s share of Rs 1800 to EPF will be split as 8.33% of Rs 15,000 i.e Rs 1,250 to the pension scheme and balance Rs 550 as employer’s share to the PF.
For a person has taken his first job after 1 September 2014, both the employer’s and employee’s share, 12% of salary each will be allocated fully to the PF.
On a whole, in spite of a possible impact on the monthly take-home salary, the revision of statutory salary ceiling to Rs 15,000 may do wonders for retirement savings.
|
Monthly Salary |
Before/After |
Provident Fund |
Pension Scheme |
Insurance Scheme |
|
Upto 6500 |
Before 1 Sep 2014 |
Mandatory |
Mandatory |
Mandatory |
|
After 1 Sep 2014 |
Mandatory |
Mandatory |
Mandatory |
|
|
Between 6500 to 15000 |
Before 1 Sep 2014 |
Voluntary |
Mandatory if covered under PF |
Mandatory if covered under PF |
|
After 1 Sep 2014 |
Mandatory |
Mandatory |
Mandatory |
|
|
More than Rs 15,000 |
Before 1 Sep 2014 |
Voluntary |
Mandatory if covered under PF |
Mandatory if covered under PF |
|
After 1 Sep 2014 |
Voluntary |
Cannot become a member |
Mandatory if covered under PF |
Related Articles :
- Basics of Employee Provident Fund: EPF, EPS, EDLIS
- Understanding Employee Pension Scheme or EPS
- Voluntary Provident Fund, Difference between EPF and PPF
- Tax on EPF withdrawal
- Transfer EPF account online : OTCP November 10, 2013
- Articles related to Salaried on EPF, Variable Pay, ESOP,NPS, Income Tax, MBA, Changing jobs
EPFO like Income Tax organization is making changes to stay in tune with times. Due to increase in limit from 6500 to 15,000 one’s take home may be lower But increase in the statutory contribution will boost retirement corpus.
please tell me that 15000/- per month salary for EPS member is (basic+da=15000) or only basic Rs. 15000/-
I became superannuated from a PSU of Odisha Govt. on 30.09.2014. My PF deduction made on Salary cap on Rs.6500/- upto 31.08.2014.After enhancement of Salary cap by EPFO to Rs.15000/- ,I got one month salary i.e from 1.9.2014 to 30.9.2014. How much EPF pension will be sanctioned in my favour.
How many years did you serve upto 31.08.2014
I was working since 15+ years and i have withdrawn all my PF accounts (both EPF & EPS). Except 3 months pension amount was lying in my name in my last organization. SInce they didn’t pay the amount fully at the time of withdrawal, i could not able to withdraw 3 months. But later on, once they have done the payment, i have submitted the claim form for partial (3 months) withdrawal. I got only the PF amount but 3 months pension was rejected stating that 3 months cannot be given already withdrawn. This was sometime during 2016 middle.
I would like to know whether i will be eligible for Pension (EPS) in my current organization. I have joined here on 1 jan 2016 and 8.33% is going to pension every month. Since pension is not applicable to those who have joined after 1 sep 2014, will i be eligible for getting pension if i work for 10+ years. Pls clarify.
Sir
My dad joining date was 2/1/1978 and he retired on 5/1/2008
At the time of retirement he was paying 541 towards pf
Now he is getting 1064 rs per month penson
How much penson he will get after the change from 1 see 2014
And is there any amount I have to pay to pf
Please sir tell me in detail
I’m very confused
I am member of epf since july 1989.My basic plus da is now 50000 i have not opted in sept 2014 for pentionable amout in exess of 15000. Can I now opt to pay more amount to pension fund. If yes what is procedure.we had meeting with pf comissioner but we are not clear if u can pay more than 15000.
Hi,
My employer is only contributing Rs.550 + Rs 1250 (12℅ of 15000) but my contribution is Rs.2821 (12℅ of my salary+DA).
My query – why my employer is not contributing 12℅ of my salary+DA?
It was great to stumble upon this post. I recently had to fill out a form and spent an enormous amount of time trying to find an appropriate I am sure at least once in your life you had to fill out a form. I use a simple service
https://goo.gl/QGtYDdfor forms filling. It definitely makes my life easier!during last 10 years i have 800 days i.e 80 days per year in a govenment organisation as a seasonal worker. my epf has been deducted as per rule, can i eligible for pension as i have been retired from dervice.
please inform me with documents no.
Anybody knows about full pension scheme in eps
Means yearly contribution to eps limit is actual basic salary+DA (may be Rs50000) not 15000
I was working in five month and then left the job & my pf amount is received but my pension contribution amount is not received.So please suggest.
Hi,
I have changed company 3 months back. I noticed that my old company as well as new company deposited 1250 into EPS in that month. Isn’t it wrong to deposit more than 1250 into EPS as it reduced my subscription to EPF amount in that month. Moreover, only service is transferred, So I lost that extra EPS money deposited.
Please let me know how to pursue this.
Thanks,
Madan
Please recheck the EPF contribution.
Atleast get the EPF break from the new company.
Check the UAN passbook.
How to Calculate EPF pension
DATE OF BIRTH.10.05.1959
Date of joining.01.11.1979
Hi. I am EPFO member since 1996. Till last month my EPF was calculated on my basic salary +DA. . But from this month onwards they have started calculating it on 15000 only. Is there any clause for employers to do so.
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Sir Myself (D.O.J 21.02.1983)with salary deduction with FPF Contribution left working on 14th Nov 1995 more than 10 yrs and now aged 55 yrs and not worked later. Am I going to be eligible for Family Pension under Family pension SCEHEME 1995.my employee code 071402082 PF NO 032 and pension a/c WB/15008/186.Hope my resignation on 14th NOV will not affect my pension and if I can start my pension on reduced rate being 55 yrs now.
Also my husband with Employee code no is 2938 and FPF ac no is W.B/15008/P-118. who worked for more than 20yrs and was deducting FPF took early retirement on 31st Dec 1994 is eligible for Family Pension under the scheme?Can I get advise on Mail as I am not very Computer savvy and may not be able to locate this site again am afraid.Pl help and tell me whom to approach as we are not getting any pension.
Sir, I was earlier working with a limited company and due to company closure in 2007 that time my age was 51 years. I opted for reducing pension and getting the monthly pension of Rs.1081/month.
Since Dec.2012, I joined another company and since then I am PF Members.
My current basic salary is Rs.11950/- on which Rs.1434/- one share, totalling Rs.2868/- amount is going to PF.
Pl. let me know what pension amount I shall get on this deduction.
Regards/Jyoti Parkash Sharma
Mob : 8586981982
Sir Myself (D.O.J 21.02.1983)with salary deduction with FPF Contribution left working on 14th Nov 1995 more than 10 yrs and now aged 55 yrs. Am I going to be eligible for Family Pension under Family pension SCEHEME 1995.my employee code 071402082 PF NO 032 and pension a/c WB/15008/186.Hope my resignation on 14th NOV will not affect my pension and if I can start my pension on reduced rate being 55 yrs now.
Also my husband with Employee code no is 2938 and FPF ac no is W.B/15008/P-118. who worked for more than 20yrs and was deducting FPF took early retirement on 31st Dec 1994 is eligible for Family Pension under the scheme?Can I get advise on Mail as I am not very Computer savvy and may not be able to locate this site again am afraid.Pl help and tell me whom to approach as we are not getting any pension.
Hi Sir,
I have recently quit my company where I was employed for 9 years 5months. I have applied FORM 10C to withdraw my EPS amount. Previously my contribution towards EPS was 541/- month which has changed to 1250/- after SEP 2014. My Basic Salary was 41,850/- per month at the time of leaving the company.
Request you to please let me know how much total money it will be in my EPS account and whether I will be receiving the full amount.
Kind regards
Mohit
Hi, Post Sep 2014, a higher amount of Rs. 1250 is being deducted towards EPS. This should have a positive impact on the Pen sion amount calculated. But I see comments regarding max pension being Rs. 3250 (which is calculated based on Rs. 6500 salary limit which is now revised to Rs. 15000). Can you please clarify?
Pension calculation will be based on Rs 540 pm for amount contributed till Sep 2014 and on 1250 per month after Sep 2014
For example someone joined in Dec 2000 and retired in 2015. Then Pension would be Rs 1877 per month
dear
i lost may father in Oct 2013 and till oct 2013 all the pf contribution are made
0)
so from Sept 2014 EDLI new rules the upper limit for calculations of ELDI pension is 15000 (BASIC+DA)
so can i able to get the revised EDLI amount as per sept 2014 rules or it will alucated by pf office as per old 6500/- rs limit
My last organization I have worked two years and had transfer my six year service PF amount from previous organization. After three month discontinue Now I joined with organization and continuing my PF deduction.
My point is May I eligible for pension scheme future after my total 10 years contribution .
You are eligible for EPS from your earlier organization if you haven’t withdrawn from it.
How did you transfer EPF from earlier organization , only EPF or EPS also. For EPS did you get scheme certificate.
Are you continuing with EPS in current organization?
Mine is a typical may be rare case
I am a senior citizen 15 Jan 1947 born retired from Central Govt and presently getting pension around 31,000 PM.
After retirement at the age of 60+, I started Technical consultancy services with the group of retired technical people above 60 years of age all pensioners getting pension more than limit of EPF ie 15000.All consultants were part time ,freelancers and were booked for 4 to 5 days at an average.
Last month I applied on line to get EPF NO under 1(4) and mentioned effective date of Dec 2007.Unfortunately I got allotted the Number and now being asked to pay all chages wef Dec 2007.I,in the application I have shown ONE Full time employee ie SELF.
1. Whether people above 60 years of age are eligible for starting PF and pension contribution?
2. Whether part time freelancer technical consultants working 4-5 days a month at an average and being paid piece meal basis are eligible for PF contribution?
3. Whether my propitiatory is eligible for EPF Registration?
Pl advice what to do in the present circumstances?
I am joined in a company on 12/5/2010 continuing, wish to retire on 5/2020(mean 10 years, age will be on 5/2020 43years 4 months) how much pension will be get on 50 year age, my basic 12460, DA3600 .
You can use the calculator at Calculator
You can use the calculator at EPS Pension Calculator
dear sir epf 95 pention insurance benifeet clear defenation send early deth 01/04/2015 to 30/03/2016
Hello,
since 2013 my pf amount is Rs 840/. how many years i have to pay for eligibility of Pension and how much will get in pension amount ??
I’m working for a private firm since 2007 and was paying 6500/- annually towards EPS and from Sep 2014 till date paying 1500 monthly towards EPS. I have totally 9 yrs of exp and planning to quit job and withdraw the EPS amount.
Can someone help me understand the EPS amount I would be getting?(My Basic salary is 20000 +)
Thanks,
Rohini
Dear Kiri,
Can I just withdraw my Pension contribution (towards EPS) only,without withdrawing my Provident fund contribution As it is giving decent returns.i.e.I want to withdraw contribution made against pension fund at 9th year of service and also wants to contribute in EPF only at the same time .Is it technically possible??
please clarify.
Thank you
Dear Sir,
I want to know, is pension fund principle amount is refundable to nominee or will nominee able to get pension? or this pension fund amount is lapsed?
According to rules, an employer has to contribute 8.33 per cent of the basic salary or Rs 1,250 (whichever is lower) a month towards EPS. Unlike the Employees Provident Fund (EPF), this does not receive interest. The component that can increase a subscriber’s payout is the number of years of service
If you have completed at least 10 years of service, you start getting pension from this pool after you turn 58. The pension amount is based on the number of years you had contributed to the scheme and your basic pay at the time of retirement. Here again there is a cap of Rs 15,000(earlier it was 6,500). If you were in service for 20 years or more, you get 2 bonus years as well.
On superannuation
Age 58 years or More and
atleast ten years of service
The member can continue in service while receiving this pension
On attaining 58 Years of age, a EPF member cease to be a member of EPS automatically.
2) Before superannuation
Age between 50 and 58 years and
atleast ten years of service
The member should not be in service.
3) Death of the member Death while in service or.
Death while not in service
4) Permanent disability Permanently and totally unfit for the employment which the member was doing at the time of such disablement
I was retired on 9-2-2011 . I want to know the elegibility of weitage and arrears since I havebeen a member since 1980 onwards and opted pension in 1995 onwards upto 2011.
Dear sir,
I would like to know what is the maximum amount of pension I can get after my retirement? Minimum is 1000 per month. But what about my pension amount if my last 5 years avarage drawn salary is 20000?
Sir,
in EPS a fixed amount goes which was Rs 541 before Oct 2014 and now is 1250 per month independent of basic amount(usually). So if you have worked for say 35 years, your max monthly pension will come to Rs. 7500
(15000 * 35) / 70 = 7500
Hi Sir,
My Total exp is 3.9 years. I joined in COMPANY A on march 28 2011. Before sep,2014 my EPS contribution is 541 RS per month.
After sep,2014 my EPS contribution is 1215 RS per month.
I resigned to COMPANY A ON JAN 14 ,2015. I applied for PF and EPS withdraw request. I got MY PF amount. Now my question is regarding my EPS money.
QUESTION
********************************
HOW MUCH MONEY I WILL GET from EPS withdrawl. is it calculate on 6500 OR 15000 ???
Please clarify.
Currently I am not working. I am doing my own business.
Thanks & Regards,
chinna
I retired in April 2013, after completeing 33 years service. i am taking pension with-out comutation around rs2100. is any chance for me to get additional amount and arrears by amended scheme.
sir i am working in pvt.ltd company. i am joining this company from feb-2007. last 8 year .epf deducted from my salary. but befor this company i am worked 17 year in another company they deduted my epf 17 years .i am applyed for pention scheme after my age of 50 year .and that is received from jan-2011.@ 800/-pm.i dont understand what about epf deducted from 2007 in current company .i am alrdy taking per month 800/- pention.can liable for another pantion .becouse current company is deducted epf from 2007 from this contribution sum amount going pention scheme .than whant can i do please guide me.can i whithdow this pf or any other soluation.
I want to know the Epf insurance and pension of wife and children in case of death. My brother in law died during his job. Details are as below : Job started 01/01/2013. Epf deduction amount 1200/- on basic salary of Rs. 10000/-. He died on 30/09/2014. The basic salary was same. Please tell how much will be Epf insurance and pension for his wife and two childrens. Naveen
MARI BASIC SALERY 2200 RS HAI COMPANY COLSED 2011 31 DEC-PENTION AMUNT KETNA HOGA
It depends on how many years you have worked. If the company has closed did you withdraw EPS? Minimum Pension you will get is Rs 1,000
Our article Understanding Employee Pension Scheme or EPS
SIR I AM WORKING SINCE 1.03.1980. DURING NOV.1995 MY SALARY WAS RS.9847/- NOW MY SALARY IS 29900 FOR WHICH PF HAS BEEN DEDUCTED AT 12% AMOUNTING TO RS.3,588/- AND MY CONTRIBUTION FOR PENSION SCHEME IS 1,250 FROM SEPTEMBER 2014. I AM GOING TO RETIRE ON 28.07.2016. I WOULD LIKE TO KNOW HOW MUCH PENSION I WILL GET.
Sir I am working since April 1980 and my P.F.a/c at udaipur i have transfered from udaiupr to Kota 14.4.88 and my P,F.contribution contiue after smetime my P.F. A/c also transfer at kota. Iam going to retire after comlesion of 60th year of the age on 30sept.2016 i whuld like to know how much pension I will get
please give reply
You can use the calculator at EPS Pension Calculator
Hi,
From 1 Sep 2014 wage sealing enhanced form 6500/- to 15000-, My current basic is 13200/- & service period 18 years. Please let me know pernsion calculation formula.
I have changed companies and have been transferring my PF for the last 14 yrs. I dont see any indication of the pension being transferred even though I had given an extra form last time for the transfer of pension.
The contribution has been 541 and 1250. How are the pension years calculated?
Dera Kirti ji,
Very improtant information shared here. Thanks. I have a queiry I will be thankful to you if you can revert. I am working Since 2001 till date my current basic Salary is abuot 36000 & per month PF contibution is 4206. I am currently 44.
1. what amount of Pention I will get on retirment at age of 50 & 58
2. Can i or my Nominee get lumsum amount of my constibution to EPF pention Scheme
Hello Sir,
Based on information you shared.
Contribution to EPS before 1/Sep/2014 was Rs 541 per month.
After 1/Sep/2014 contribution to EPS is Rs 1250 per month.
If you retire when you are 50 years old you would have 17 years of service ,monthly pension would be Rs 3643
If you retire when you are 58 years old you would have 25 years of service, monthly pension would be Rs 5786.
What is formula to calculate pension after limit 15000/-
Hi,
I am a EPF member from last 13 years. What I have calculated and come to know that as of now I have paid Rs.84396 towards pension fund (Rs.541 X 12 months X 13 Years) and total interest will be accrued around Rs.208036 in 35 years even if I stop contributing to pension fund from today. So total Pension fund amount including Principal + Interest at my 58 years of age will be 293062 @ 8.5% annual simple interest.
Lets calculate what we’ll get as a pension :
Rs.6500 X 13 Years / 70 = Rs 1207 per month = Rs 14485 annually. So it is advisable to withdraw the pension fund & PF before 10 years continuation else it’ll be blocked. I could have accumulate this money in a bank account as a recurring deposit and over a 35 years period corpus would be 293062 and on my 58 years of age I may enjoy higher pension amount per month.
Kirti need your views please.
Sir as you have been EPF member for last 13 years you are not eligible to draw from the Pension Fund. Once, the service period crosses 10 years, the money withdrawal option ceases you can only get Scheme Certificate which (s)he can use to get pension from the age of 50 years. For more details please refer our article Understanding Employee Pension Scheme or EPS
Check your payslip or ask your payroll department they would be able to help you out. Please do let us know
Latest modification widow pension after modification pension from 1-9-2014
Under the modified scheme, the minimum monthly pension for widows has been fixed at Rs 1,000 and for children at Rs 250 per month. Similarly the minimum pension entitlement for orphans has been fixed at Rs 750 per month
DEAR SIR,
MY SALARY IS 22000/- P.M. AND BASIC-16600/- P.M. FROM 01.03.2015
KYA MERA PF DEDUCTED HOGA YA NAHI
PLEASE HELP
When did you start working? Please check your payslip or contact your payroll department. You should contribute to EPF.
Hi Rakesh,
IT IS BECAUSE OF U R BASIC SALARY.
If basic salary is above 15000, PF WILL NOT BE DEDUCTED.
BUT THERE IS ONE RULE. IF U R ALREADY UNDER EPF, THEN IT WILL BE DEDUCTED.
I.E PREVIOUS U R BASIC IS BELOW 15000, THEN PF WILL BE DEDUCTED AND U R UNDER EPF. AFTER PROMOTION/HIKE U R BASIC MIGHT CROSS 15000. In this scenario, PF will be deducted.
But if u r first job basic is ABOVE 15000, THEN PF will not be deducted.
Dear Sir/Madam,
I am an ex employee. I want to know that the pension amendment made w.e.f. 01/09/2014, I can get the benefit or not..
My eligible service – 37 years
Date of Joining – April,1982 and Superannuation 01/07/2012.
My average salary of last 60 months was around Rs.13,147/-
If yes, how much…
I have completed 12 years (date of join 4/2/2002) in BSNL. Now my basic Salary is 24000/. I am the EPF member. deducting towards pension is 1250/ . how much I will get pension if I retire on 1/2/2015
Hello Murali,
To get pension
Age should between 50 and 58 years and atleast ten years of service and the member should not be in service
Age 58 years or More and atleast 10 years of service.
So as you have more than 12 years of service it depends on your age.
Pension is not a big amount between 1000 to 3600 Rs per month only.
is it possible that epf pension increase every year that means central govt. employee increase every six month as increase D.A.
Good idea but no. It is fixed
I have worked for 15 years with Rs 540 going in each month and now 1250 to pension fund, what would be my pension salary after age of 58.
Currently I am 36
Minimum Pension one can get is Rs 1,000
Maximum Pension one can get is Rs 3,220
Pension amount= (6500*Service Period)/70
If you have completed more than 20 years in service then add two years bonus in above equation.
According to new rules your pension can’t be less than 1000 and more than 3220 per month.
You are eligible for pension after the 10 years in the service
You can get pension only after the age of 58.
If you are not in service then you can get pension before 58 years. But your age should be more than 50 years.
If total duration of your service is more than 9.5 year. Then you are only entitled for pension after the age of 50 years. You will get only Employee Pension Scheme Certificate. After 50 years of the age you can produce this scheme certificate for start of the pension.
if your total service period is less than 9.5 years then you will get refund.
Hope it helped
My current salary is well above Rs 15,000/-. So, there is no change for me EXCEPT that the EPS contribution is now Rs 1250/- per month instead of Rs. 541/- per month (which it was before Sept. 2014). This has resulted in a reduced employer contribution to my PF a/c by Rs. 709/- per month. Will someone be kind enough to tell me (a) whether I am eligible for pension after 58 years (b) what my original pension would have been, and (c) what the revised pension will be per month and how long will it be paid? Thanks
If you are contributing towards EPS you are eligible for pension (min 1000 Rs a month)
For details on Employee Pension scheme check out our article Understanding Employee Pension Scheme or EPS
Here, the formula of calculation of pension is similar to that of a Govt. Employee. ie.,
Average Salary X Service
70
Maximum service for the calculation of service is 35 yrs. If a member has maximum service, pension will be:
Average Salary
2
The Average Salary here refers is named as pensionable salary in the scheme. It is arrived by considering the average contributing salary preceeding 12 months from the date of exit. Maximum contribution to EPS is Rs. 541/- irrespective of salary amount. (Unless taken permission)
after amendment eps contribution increased from 541 to 1250 rs for a member having salary 15000 /month or more. this additional contribution (709 rs)is diverted from epf. which will lead to a loss of rs. 1250000 in epf after retirement if considering services of 30yrs. the only benifit is a mere 500 /month addtional pension…which is even less than the interest of this amount…i doubt if this scheme is beneficial …
Why will there be loss of 1250000? Could you expand on that?
I want to know, if a employee was not a member of the Scheme and as per the current Rule he come under the same, will the complete part of PF (12% Employee and 12% of employer) would be deducted from his CTC or the 12% contribution would be made by the Employer.
One more thing, is there any provision through which the new policy will not impact the salary of the employee who was not a member of EPF echeme before 01Sep14. Is it possible that the complete part (12% Employee and 12% of employer if salary is less than 15000) could be contributed by the employers only and will not impact the take home salary.
From what I know, only contribution from employer in EPF is not possible.
Yes an employee salary will change if he comes under EPF.
after 1st sept 2014 weather EDLI COtribution of 0.5 % is changed
Are you asking me or telling me? From what I know it hasn’t changed.
Incase you have different information please let us know.
Weather Edli scheeme cotribution amount 0.5 is increased after 1st september 2014
My basic salary is Rs.23000 I am servicing since last 21 years.Now on the bases of new pension scheme Right now I leave my Job How many amount will I obtain Nd After 16 years what amount I obtain?
Hi,
I have a Query related to Employee Provident Fund (EPF) and Employees Pension Scheme (EPS).
The 12% of monthly basic salary goes to EPF (employee contribution) and same as employer contribution.There are two parts of employer contribution .
First is 8.33 % of basic salary goes to Employees Pension Scheme (EPS). Earlier It was fix as 541.00 before September 2014. But now it 8.33% of basic salary (>15000).
I just want to opted out this pension fund scheme (EPS only ) and I want the total 12% of employer share will to Employee Provident Fund (EPF).
Is It possible?
Arpit your understanding is correct.
As far as I know you cannot just opt out of EPS . You need to opt out of both EPF and EPS.
Only those who started job after 1 Sep 2014 and earning more than 15,000 Rs in basic and DA will not be contributing to the Pension scheme.
I am an ex employee of Mackinnon Mackenzie & Co, Ltd. Our Calcutta Office declare closure on 2000. I use to get EPF for Salt Lake Office Rs 789/- per month. I have not commute any part of my pension. Now after the announcement of minimum Rs. 1000.00 my pension increase only Rs. 53.00 why ? I shall eager to know
Hello Amitava,
We need following information
1. When did you join before 15.11.1995 or afterwards
2. How many years of service you had?
3. What was your age when you retired?
How is the Withdrawal benefit computed with effect on changes of salary ceiling limit from Rs 6500 to Rs15000, if my monthly basic 50000 and retiring on 31 December 2014. Rendered services for 7 years
How is the Withdrawal benefit computed with effect on changes of salary ceiling limit from Rs 6500 to Rs15000, if my monthly basic 50000 and retiring on 31 December 2014. Rendered services for 7 years
Now i am drawing Rs 25000 per month & completed 26 years of service,i plan to take VRS in the month of jan 2015 How much i will get pension under new pension scheme epf 2014
you will get big zero
Now i am drawing Rs 25000 per month & completed 26 years of service,i plan to take VRS in the month of jan 2015 How much i will get pension under new pension scheme epf 2014
you will get big zero
Why it will be zero, he has already completed more than 10 years and eligible for pension?
According to new rules your pension can’t be less than 1000 and more than 3220 per month.
You are eligible for pension after the 10 years in the service
No it should not be 0 but would be atleast three zeros and that too after 1
According to new rules your pension can’t be less than 1000 and more than 3220 per month.
You are eligible for pension after the 10 years in the service
Some FAQs regarding Pesnion scheme are at http://www.epfochennai.tn.nic.in/faq.html
Dear Sir,
Once the amendment was made, I had many doubts which the employer(HR) himself has not clarified.Reading the articles (both present and past), to be frank has really made me understand the entire concept.
I read this particular article after reading your previous articles followed by reading the actual amendment copy. If I am right you have missed two crucial facts about the amendment. If the point mentioned by me is right, kindly update the article so that it will benefit other readers.
Points Missed
————–
1. Those who have basic salary above >Rs.15,000 and wish to continue in the scheme, need to contribute 1.16% from their contribution into the pension fund. Result : Our contribution to EPF comes down and EPS increases with marginal increase in Pension.
2. If the employee doesn’t come out with a fresh option within 6 months from 1.09.2014, it is deemed that he doesn’t wish to pay anything extra and any money paid by the member from his contribution will be reverted back to EPF with interest thereon.
3. Thirdly, my doubt is since it is mentioned in the amendment, that if the member doesn’t wish to opt then the extra wage paid by member will revert back to EPF. So does it mean now EPS is voluntary even if a person has opted for EPF?
4. What percentage will be paid by the employer to the new members. Whether they will transfer the entire 12% to the EPF account or only the 3.67%? If they will transfer the entire 12%, then it is beneficial compared to EPS.
Dear Sir,
Once the amendment was made, I had many doubts which the employer(HR) himself has not clarified.Reading the articles (both present and past), to be frank has really made me understand the entire concept.
I read this particular article after reading your previous articles followed by reading the actual amendment copy. If I am right you have missed two crucial facts about the amendment. If the point mentioned by me is right, kindly update the article so that it will benefit other readers.
Points Missed
————–
1. Those who have basic salary above >Rs.15,000 and wish to continue in the scheme, need to contribute 1.16% from their contribution into the pension fund. Result : Our contribution to EPF comes down and EPS increases with marginal increase in Pension.
2. If the employee doesn’t come out with a fresh option within 6 months from 1.09.2014, it is deemed that he doesn’t wish to pay anything extra and any money paid by the member from his contribution will be reverted back to EPF with interest thereon.
3. Thirdly, my doubt is since it is mentioned in the amendment, that if the member doesn’t wish to opt then the extra wage paid by member will revert back to EPF. So does it mean now EPS is voluntary even if a person has opted for EPF?
4. What percentage will be paid by the employer to the new members. Whether they will transfer the entire 12% to the EPF account or only the 3.67%? If they will transfer the entire 12%, then it is beneficial compared to EPS.
I am the member of EPFO and my Salary is 16500. Earlier my PF deduction made on Salary cap on Rs.6500/-.After enhancement of Salary cap by EPFO to Rs.15000/- from 01/09/14. What impact will be made on my salary.What amount will be deducted?
Good question Sanjoy.
No change on your tax home salary as Employee’s contribution is still 12% of basic.
I am the member of EPFO and my Salary is 16500. Earlier my PF deduction made on Salary cap on Rs.6500/-.After enhancement of Salary cap by EPFO to Rs.15000/- from 01/09/14. What impact will be made on my salary.What amount will be deducted?
Good question Sanjoy.
No change on your tax home salary as Employee’s contribution is still 12% of basic.
I know this comment is little away from this topic, but thought to bring to notice for the other perspective on EPF MANDATORY for low salaried Employees.
Some days before in one Talk Show, One discussion like whether making EPF MANDATORY for People getting a salary of 6,500 is good/ Bad?
There was a widow woman with a single child who is teaching in a private school getting a salary of 5000 Rs. With all the Expenses needed, She needed a minimum of 7000 Rs. So at this point even the salary itself is low, with that EPF is also cut saying that it will help you in the olden days, Not sure how much all this is fare, Now she will have go to a lender who can give that remaining amount (along with this EPF fund) with a Loan interest rate of 12%.
Not sure if all this makes sense to make it mandatory for people who already have a low salary?
Anyways just rattled here, as not much can be done about it.
Thanks Lakshmipathy nothing if off the topic.
Never thought of the perspective you brought up.
To save for future the present is being hit. How do deal with situation, allow people to choose whether they want to contribute to EPF? Not sure how many will.
I know this comment is little away from this topic, but thought to bring to notice for the other perspective on EPF MANDATORY for low salaried Employees.
Some days before in one Talk Show, One discussion like whether making EPF MANDATORY for People getting a salary of 6,500 is good/ Bad?
There was a widow woman with a single child who is teaching in a private school getting a salary of 5000 Rs. With all the Expenses needed, She needed a minimum of 7000 Rs. So at this point even the salary itself is low, with that EPF is also cut saying that it will help you in the olden days, Not sure how much all this is fare, Now she will have go to a lender who can give that remaining amount (along with this EPF fund) with a Loan interest rate of 12%.
Not sure if all this makes sense to make it mandatory for people who already have a low salary?
Anyways just rattled here, as not much can be done about it.
Thanks Lakshmipathy nothing if off the topic.
Never thought of the perspective you brought up.
To save for future the present is being hit. How do deal with situation, allow people to choose whether they want to contribute to EPF? Not sure how many will.
OK GOOD
Thanks Dinesh.
OK GOOD
Thanks Dinesh.