Good News! If your salary becomes Rs 30 thousand then there will be a big jump in pension, know how much money you will get in your hands now.

EPFO Pension Update: Only one question often arises in the mind of every employee working in the private sector regarding retirement – ​​will the support of pension received in old age be enough? Considering the speed at which inflation is increasing today, the current pension amount of EPFO ​​seems like a drop in the mouth. But, now a big ray of hope is visible for crores of employed people across the country. The Supreme Court has directed the Central Government and EPFO ​​to increase the ‘Wage Limit’. If this change becomes a reality, then there may be a huge jump in the pension of private employees.

After all, why is your pension still less?

First of all, it is important to understand why your hands remain empty at retirement despite your hard-earned money. According to the current rules of EPFO, the salary limit for pension is fixed at only Rs 15,000. Its major disadvantage is that whether your basic salary is Rs 50 thousand or Rs 1 lakh, it is considered only Rs 15,000 for calculating pension.

When your company deposits money in your PF account, a part of it goes to EPS i.e. Employee Pension Scheme. Due to the fixed limit of Rs 15,000, the contribution towards EPS also gets limited. This is the main reason why the amount of pension received after retirement remains much less than expected. At present, due to this old rule, any employee can get a maximum monthly pension of Rs 7,500 and minimum Rs 1,000.

Now the entire pension math is going to change

Now let’s talk about the big change that every employee is waiting for. There is discussion that the wage limit can be directly increased from Rs 15,000 to Rs 30,000. If the government approves this, the entire method of pension calculation will change. For your information, let us tell you that there is a simple formula to calculate pension: (Pensionable salary × years of service) / 70.

At present when we calculate on the base of Rs 15,000, the maximum pension on completion of 35 years of service comes to Rs 7,500. But, as soon as this base increases to Rs 30,000, this figure will directly double. In this formula, ‘pensionable salary’ means your average basic salary of the last 60 months. The direct benefit of increasing the limit will be that the amount deposited every month in your EPS account will increase, which will make your future secure.

Your monthly pension can directly double

The biggest reward of this possible decision will be given to those employees who have been serving in the private sector for a long time. If the wage limit goes up to Rs 30,000 and an employee completes 35 years of service, his maximum pension will jump from Rs 7,500 to Rs 15,000 straight away. There is talk of relief not only for those getting the maximum pension, but a big increase is certain for those getting the minimum pension as well. According to the data, if the limit is increased, employees can get a pension of at least Rs 4,285, which is currently only Rs 1,000.