Presently employer's contribution towards pension scheme is maximum Rs.541/- with the basis of Rs.6500/-. Please let us me know whether with the new changes the basis should be Rs.15000/- so that employers's contribtuion towrds pension @8.33% is maximum Rs.1250/-.
Regards,
V M Sapale
From India, Bhiwandi
1Regards,
V M Sapale
From India, Bhiwandi
Further, there is no maximum limit for PF Basis. Employees contribution to PF is 12% on the actual basic salary without the ceiling of basis Rs.6500/-. What would be the chnage to be made with the new amendment w.e.f.01.09.2014 in our case.
Regards,
V M Sapale
From India, Bhiwandi
Regards,
V M Sapale
From India, Bhiwandi
Hi,
Yes 1250 is the maximum limit. And this amount will be shuffled from the 3.67% of Pf contribution to 8.33% of EPS contribution all together toatl amount would be same.
Go through the attched excel caliculation for better under standing.
From India, Visakhapatnam
Yes 1250 is the maximum limit. And this amount will be shuffled from the 3.67% of Pf contribution to 8.33% of EPS contribution all together toatl amount would be same.
Go through the attched excel caliculation for better under standing.
From India, Visakhapatnam
If an employee works for 30 years, with this scheme of EPF & EPS, the total contribution to EPS with 8% annual interest becomes Rs. 24,00,000 (TWENTY FOUR LAKHS), but we get a pension of Rs. 2500 to 3500 max. and nobody is sure how long we take pension also. The principle is not returned. So where is the justice in this scheme. It should not have been made compulsary. Why nobody is raising voice against this...
From India, Bangalore
From India, Bangalore
Hi Kumar,
I agree with you, the worst part is interest on pension contribution is not applicable. Long period of pension savings under EPS scheme gives low returns which is an injustification only.
Minimum pension 1000 it is declared, and as mentioned in notification all words or figures of 6500 will be replaced with 15000 mimum pension per month would be 15000 am I correct? correct em if I phrased it wrong in that.
Thanks & Regards,
Pawan kumar P
From India, Visakhapatnam
I agree with you, the worst part is interest on pension contribution is not applicable. Long period of pension savings under EPS scheme gives low returns which is an injustification only.
Minimum pension 1000 it is declared, and as mentioned in notification all words or figures of 6500 will be replaced with 15000 mimum pension per month would be 15000 am I correct? correct em if I phrased it wrong in that.
Thanks & Regards,
Pawan kumar P
From India, Visakhapatnam
Hi Pawan
No, it is not 15000/- if an employee works in this slab for 30 years he will get 6428.57 as pension, next column in your attachment is accumulated this pension amount for 20 years (which is of no use). but what is the guarantee that a person will enjoy the pension for 20 years. Our argument is what happens to the priciple and the interest for the service period. They could retain the pension amount as 541 only even the PF calculation is for 15000, if they want to do any good / favour to the employee community.
Thanks & Regards
Mohan
From India, Bangalore
No, it is not 15000/- if an employee works in this slab for 30 years he will get 6428.57 as pension, next column in your attachment is accumulated this pension amount for 20 years (which is of no use). but what is the guarantee that a person will enjoy the pension for 20 years. Our argument is what happens to the priciple and the interest for the service period. They could retain the pension amount as 541 only even the PF calculation is for 15000, if they want to do any good / favour to the employee community.
Thanks & Regards
Mohan
From India, Bangalore
Hi Mohan,
Thank you very much. In my previous reply, my question I have wrongly typed minimum pension 15000 instead of maximum pension 15000?
Let me phrase it again here.
1. Minimum pension limit is 1000 recently notification has been released. Is teher any maximum figure to get Pension? if so is that 15000? if so please share the section of the act or notification where it has mentioned.
2. Can you please share the calculation method how you have got the value of Pension 6428.57/-( Pensionable salary * Pensionable service) devided by 70 is the formula I have used to calculate the pension and month wise I have entered in my previous reply attachement.
3. I have taken 20 years as example like if an employee receives 20 years of pension(Because in the PF act it self mentioned that, the family members of employee where he has nominated will be eligible for pension after his turn.
4. More over I have taken an exapmle of employee who has joined now and forecasted for future and amounts has been calculated on current process.
5. I have agreed with kumar saying the worst part is interest on pension contribution is not applicable. Long period of pension savings under EPS scheme gives low returns which is an injustification only
Suggest us where should we raise our voice to take this up.. As I am an youngstr Sure I will be changing the every firm wih in 5 or leass than 9 years 6 months. Sure I will be opting with drawl and I will invest the same lumpsum amount in any other source to get more returns where it would be more than the future Pension returns.
What about the situation of me if I have to stay back more than 9years six months in one organization where I can't go for With drawl option as I will be under the barcaket of Pension eligibility?
Thanks & Regards,
Pavankumar P
From India, Visakhapatnam
Thank you very much. In my previous reply, my question I have wrongly typed minimum pension 15000 instead of maximum pension 15000?
Let me phrase it again here.
1. Minimum pension limit is 1000 recently notification has been released. Is teher any maximum figure to get Pension? if so is that 15000? if so please share the section of the act or notification where it has mentioned.
2. Can you please share the calculation method how you have got the value of Pension 6428.57/-( Pensionable salary * Pensionable service) devided by 70 is the formula I have used to calculate the pension and month wise I have entered in my previous reply attachement.
3. I have taken 20 years as example like if an employee receives 20 years of pension(Because in the PF act it self mentioned that, the family members of employee where he has nominated will be eligible for pension after his turn.
4. More over I have taken an exapmle of employee who has joined now and forecasted for future and amounts has been calculated on current process.
5. I have agreed with kumar saying the worst part is interest on pension contribution is not applicable. Long period of pension savings under EPS scheme gives low returns which is an injustification only
Suggest us where should we raise our voice to take this up.. As I am an youngstr Sure I will be changing the every firm wih in 5 or leass than 9 years 6 months. Sure I will be opting with drawl and I will invest the same lumpsum amount in any other source to get more returns where it would be more than the future Pension returns.
What about the situation of me if I have to stay back more than 9years six months in one organization where I can't go for With drawl option as I will be under the barcaket of Pension eligibility?
Thanks & Regards,
Pavankumar P
From India, Visakhapatnam
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Employer Administrative Contribution 2017.pdf