The Employees’ Provident Fund Organisation (EPFO) has recently announced changes that could significantly benefit retired employees. This update promises higher pension payouts under the Employees’ Pension Scheme (EPS), offering better financial security for pensioners. Here’s a detailed overview.
1. What Is the Employees’ Pension Scheme (EPS)?
· EPS is a part of the EPF contributions made by employees and employers.
· It provides a monthly pension to retired employees after reaching the retirement age of 58.
· The scheme also supports survivor benefits for family members in case of the employee’s demise.
· Pension amount depends on salary, years of contribution, and pensionable service.
2. What’s the Latest Update?
The EPFO has announced measures to increase the pension amount for retirees. Key points include:
· Higher pension calculations: The pension formula has been revised to include more favorable multipliers, benefiting long-term employees.
· Enhanced minimum pension: Employees who contributed to EPS for several years may see a substantial increase in monthly payouts.
· Revised contribution norms: Some recent contributions and adjustments may now count toward pensionable salary, boosting final pension.
This move is part of EPFO’s ongoing effort to ensure pensioners have financial stability and enhanced retirement benefits.
3. Who Will Benefit?
· Retired EPF subscribers who have completed the required years of service.
· Employees who retired recently and are awaiting EPS disbursement.
· Survivor pension beneficiaries, who may see increased payouts due to the revised calculation.
4. How Will Pension Be Calculated Now?
The EPS pension is generally calculated using the formula:
Pension=PensionableSalary×PensionableService×0.00251Pension = \frac{Pensionable Salary \times Pensionable service \times 0.0025}{1}Pension=1PensionableSalary×PensionableService×0.0025
· Pensionable Salary = Average of last 60 months’ salary.
· Pensionable Service = Number of years of contribution.
· The revised update effectively increases the multiplier or includes higher salary components, resulting in a larger pension.
Example: A long-serving employee retiring with a pensionable salary of ₹15,000 may see an increment of several hundred to a few thousand rupees per month after the update.
5. How Retirees Can Check Their Updated Pension
· EPFO portal: Log in using your Universal Account Number (UAN) at https://unifiedportal-mem.epfindia.gov.in/memberinterface/
· Pension passbook: Check monthly EPS credits and updated pension amount.
· Grievance redressal: If the revised pension is not reflected, retirees can submit complaints through EPF grievance portal or contact their regional EPFO office.
6. Key Takeaways
· Retired employees can expect higher monthly pensions, improving retirement income.
· The update benefits both long-term employees and recent retirees.
· Pensioners should verify their updated pension amount online and ensure all past contributions are correctly accounted for.
· This is a step toward financial security and better quality of life for EPF subscribers post-retirement.
💡 Pro Tip: Keep your UAN, bank account, and Aadhaar linked to EPFO up-to-date so that revised pension credits are processed smoothly.
Disclaimer:
The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.
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