Higher Pension For Private Sector Employees: Know Details Here

Subscribe to GoodReturns
For Quick Alerts
For Daily Alerts

    Similar to government sector employees who get regular cash flows as pension money to meet expenses during sunset years, the Supreme Court has now allowed private sector employees enrolled with the EPFO until September 2014, to opt for the regular cash flow as pension instead of the otherwise lump sum payment on their discretion.

    Since the year 1995, there has been in place a pension scheme or EPS in which the maximum contribution of 8.33% of the employee's basic salary or Rs. 541 whichever was lower was to be mandatorily made by the employer which thus limited the pension amount. And if the employee wishes for the maximum contribution then intimation in this regard has to be made to the EPFO.

     Higher Pension For Private Sector Employees: Know Details Here
    So, as a Supreme Court decision, in case you have been the member of EPFO before September 1, 2014, then you as an employee of a company which makes contribution to EPFO can ask for enhancing your pension limit.

    It is to be noted that some of the companies' run their independent EPF trusts and whether such trusts are eligible to provide you with a higher pension is yet to be known.

    Also, remember now on after you leave your current job, any interest earning on the EPF money shall now no more be tax free in your hands.


    Read more about: epfo eps pension interest income
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'
    India's LARGEST EVER political poll. Have you participated yet?

    Find IFSC

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more