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POSTED BY ON December 9, 2014 6:32 pm COMMENTS (8)
Hi,
I recently got my Universal Account Number (UAN) given by the Employees Provident Fund Organisation. This was shared by my employer. I proceeded to register with the EPFO website and view my PF passbook. This passbook contained entries of monthly PF contribution, made by myself and my employer. When I looked at the employer contribution component, I found that, every month, a portion of the Employer contribution is transferred towards Pension Scheme. I got curious about this and further research gave me an idea about the National Pension Scheme.
However, I noticed the following thing. Until August 2014, the contribution towards Pension scheme was Rs. 541 (this worked out to 10.25% of Employer’s PF contribution of Rs. 5280). However, since October 2014, the Pension component has increased to Rs. 1250 (which works out to 23.67% of PF amount). I also remember that in Sept 2014, the Government of India made announcement about increase in eligibility limit for PF. However, why is the Pension component increased for me? Is this something my employer has done on his own or is it as per Government order? I realize the pension component is added to a non-interest generating fund. By contributing more towards pension fund, am I losing out in the longer run?
Please help bring clarity.
Thanks & Regards,
Balaji
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Hi.. joining new company my old Epf and pension fund transferred new company how is it..?
Hi Jagannath.R
I am not clear on what is your question. Please repeat it with more clarity
Manish
Still there is one question unanswered, Do i get it if I leave the company before hand. there are two observations, 1) When I changed companies this Pension component was not transferred to my new account. 2) the total amount currently is also without the pension component.
Hi,
Pension for central government employees who joined before 1995 ,
is being paid which is a huge burden on the tax payer.
A govt. employee while in service ,contributes only 10 % of his
pay towards pension , whereas when he retires he
is paid 40 % of pay , plus another 20 % as dearness
allowance ,throughout his retired life. Hence govt
pays the difference amount (60% – 10% , ie., 50 % )
of salary as pension from the budget .This is a huge amount
about 1.5 lakh crore per annum (10% of central govt budget)
This is like robbing money from every tax paying citizen
and paying the retired employees ( who form about 1 % of population)
Let the govt refund the full PF contribution made by govt employees
or bring them under Employee Pension scheme 1995.
Regards,
Tax Payer
Hi observer
Thanks for your sharing your valuable comment on this topic. Please keep sharing your views in future also
Manish
Hi,
But may I know when we will get back this amt. suppos i resigned from my co. after 4 year will i get the pension amt.
If your basic salary is above 15000 rupees, only 541 rupees should be deducted for EPS. Please check with your employer. Deduction of 1250 rupees for EPS does not look correct.
Hello Balaji,
What you are looking here is not National Pension Scheme(NPS), but EPS (Employee Pension Scheme)
Now the EPS is calculated as 8.33% on your basic salary, upto Rs.15000 (Earlier this was limited to Rs .6500)
This means, if you basic salary exceed Rs. 15000, the equivalent 8.33% of 15000 will be deducted as EPS. (This comes out to be Rs 1250 in your case) . Earlier, you were getting Rs. 541 (8.33% of Rs.6500)
Now weather you are losing or gaining is totally on how you see this- For me: my Rs.1250 in a monthly equity SIP would anyday beat whatever pension i would be getting through the EPS
Regards,
Abhinav