Private employees may receive good news before Diwali, with the EPFO ​​pension set to increase.

This Diwali, the EPFO ​​is expected to increase the Employee Pension Scheme. The ₹1,000 previously available under the Employee Pension Scheme may now increase to ₹2,500.

Private employees are expected to receive some good news this Diwali. It is anticipated that the EPFO, or Employees' Provident Fund Organization, may increase the minimum pension amount under the Employee Pension Scheme, which is run for the betterment of employees.

Indeed, the EPFO's Central Board of Trustees was scheduled to meet in Bengaluru on October 10th and 11th. This meeting is expected to bring good news regarding an increase in employee pensions. Employees are still awaiting information from the EPFO.

What is the current pension amount?

According to employees, the minimum pension amount under the Employee Pension Scheme is quite low. The minimum pension amount under the Employee Pension Scheme (EPS), fixed in 2014, is ₹1,000 per month, which employees have been demanding to be increased. According to media reports, it is expected to be increased from ₹1,000 to ₹2,500 in a recent meeting. This increase in the pension amount will provide significant relief to employees and fulfill their long-standing demand.

Why is there a demand for a pension increase?

Employees say that the ₹1,000 received from the pension scheme is too low considering the changing times and market inflation. Consequently, trade unions and pension benefit unions have been demanding an increase to ₹7,500 for a long time. However, according to reports, the Central Board of Supervisors (CBT) has flatly refused to increase the pension by 7.5 times.

How is the EPFO ​​pension decided?

The EPS scheme also has its own method for calculating pensions. The formula is (pension = pensionable salary × pensionable service) ÷ 70. This includes pensionable salary, the average salary of the last 60 months, and pensionable service, the number of years of service contributed to EPS. The maximum salary limit for receiving a pension is ₹15,000 per month. Additionally, a minimum of 10 years of service is required to benefit from this scheme.