EPS 95 PENSION HIKE NEWS | EPS 95 HIGHER PENSION CASE HEARING DATE
While the EPS 95 Pensioners are waiting for a favorable decision to get a pension commensurate with their salary, a scheme is being prepared to provide higher pension to the new members. EPFO intends to pay the pension in proportion to the contribution to each member's account instead of the existing method of paying pension from the EPF fund.
To this end, the EPFO Board Members 'Committee has submitted a proposal to amend the Employees' Pension Scheme, 1995. The Parliamentary Standing Committee is also considering this. However, it does not intend to change the pension scheme of the current members. In the EPF the employee's share and the employer's share is 12% of the basic salary. 8.33% of the employer's contribution will go to the pension scheme (EPS). However, the maximum salary limit is Rs 15,000 for EPS contribution.
As it is fixed, it will be around Rs. 1250 per month. It is because the pension is calculated and within this limit that even the highest paid currently receive a meager EPF pension. Under the new scheme, even if the salary is above Rs 15,000, the proportionate contribution can be paid to the pension fund.
The court went on At present the pension is not commensurate with the salary. The apex court had rejected the EPFO's plea against the Kerala High Court's order to pay a higher pension commensurate with the actual salary, but the review petition was not settled. The case is likely to be heard only after the Supreme Court constitutes a special bench. Will justice be done? The new approach is to ensure that EPFOs are not liable even if a higher pension is paid. At the same time, workers are concerned about how fair this is to the concept of social security. The Union Ministry of Labor is of the view that this will help higher income earners to pay their dues accordingly and ensure higher pensions.
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