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Simple budget worksheet template3/13/2023 ![]() Thus, employers had to contribute 8.33% of Rs.5,000, which was later raised to Rs.6,500, towards the pension scheme. The EPS-95 capped the maximum monthly pension at Rs.5,000 or Rs.6,000. The Employees Pension Scheme, 1995 (EPS-95) provided that the employer’s contribution of 8.33% should be towards the pension scheme. In 1995, the Government introduced a pension scheme under Section 6A of the EPF Act. ![]() This article covers the EPFO circular on higher pensions and its claim process. The cap on the EPS contribution was introduced in 2014 through an amendment to the EPS.īefore the EPS amendment in 2014, employees had the option to choose higher EPS contribution amounts. However, the 8.33% EPS contribution is capped at the maximum amount of Rs.15,000 even when the employee draws a higher salary. Of the employer’s 12% contribution, 8.33% goes to the Employees’ Pension Scheme ( EPS ) and 3.67% to the EPF. Currently, the employees and employers contribute 12% of their basic salary and dearness allowance to the EPF. Employees’ Provident Fund Organisation ( EPFO ) members are entitled to a pension after retirement.
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