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