Calculate Revised EPF Pension Latest News 2022
EPFO Pension Latest News Today: Needless to say that for the last few months both the Employees’ Provident Fund Organisation(EPFO) and the subscribers or members of EPFO were amid rising tension regarding the long pending pension revision case pending before the Honorable Supreme Court.
Finally, the Supreme Court came up with a landmark judgement on 4th November 2022, in favour of the subscribers which brought a wide smile amongst the millions of members of EPFO.
Supreme Court Judgement on EPF Pension Today dated 4th November, 2022
To ensure higher pension, the Supreme Court judgement on EPFO Pension Latest News Today on 04.11.2022, delivered that the subscribers must be given an opportunity to contribute higher amount to EPS Fund on actual salary basis, so that they can receive higher pension at the time of retirement based on last 60 months average salary.
This judgement of the honourable Supreme Court has left behind the traditional concept of EPFO, to calculate pension based on the maximum pensionable salary of a meagre amount of Rs.15,000/- only even if your actual salary is way beyond the maximum limit of Rs.15,000/- p.m.
Because in a pragmatic sense, the pension that one subscriber receives after his retirement, after putting in service for say 30 years or so, is not realistic at all. It does seem that the authorities of EPFO who has implemented this pension calculation scheme which is far far away from reality and market condition and is not just, fair and reasonable.
EPFO Pension Latest News Supreme Court
As per the above judgement of the Hon’ble Supreme Court of India, the employees who joined service before 01-09-2014 and were enrolled as members of the EPF Act 1952, can file a joint declaration before the EPFO, by the employees and the employer.
This joint declaration shall be filed before the EPFO within Four months from the date of Judgement i.e. within 3rd March 2023. However, till date no clarification, formats for declaration or FAQs have been published by EPFO.
The employee should declare that they are willing to contribute 8.33% from the employer’s share of 12% of the actual salary (Basis Pay + DA) to the pension fund and the employer should declare that they will remit the 8.33% (on the actual share of Basis Pay + DA) from their share to the pension fund.
Here, the pensionable salary means the average of Basis Pay + DA during the last Sixty months prior to retirement. Pensionable service is the total service put in by the employee during which contributions were made. Also, a weightage of 2 years is generally given by EPFO which is added with the total number of service period.
However, the total maximum eligible period of service shall be limited to 35 years only even if you have been in service for more than 35 years. Also, EPFO provides a bonus of 2 years if the service period is more than 20 years and less than 33 years while calculating the pension under EPS 95 scheme.
The Formula for EPF pension calculation as of now is
(Pensionable Service x Pensionable Salary)/70
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EPFO Pension Latest News Today regarding Revised EPF Pension Calculator
Synopsis of EPF Pension Latest News regarding Revised EPF Pension Calculator after the Supreme Court Judgement on EPF Pension Today:
As per the Hon’ble Supreme Court’s pronouncements dated 4th November 2022
- The Gazette Notification No. GSR 609(E) dated 22.08.2014 shall be applicable to both exempted as well as unexempted establishments;
- The Apex Court has excluded those members who already retired prior to 1st September 2014 without exercising any option in the unamended scheme since they have already existed the membership;
- Existing members who either opted or did not opt for a higher pension as it existed on 1st September 2014, shall be given an opportunity of submitting a joint declaration with the employer within 3rd March 2023 regarding a higher pension and higher contribution to the pension fund;
- As per the new landmark judgement, employer’s contribution of 8.33% of the actual salary(Basic Pay+ DA) shall have to be transferred to the EPF Pension scheme;
- Higher contribution on actual salary as above would lead to a higher pension based on the last sixty months’ average basic salary plus DA.
Supreme Court judgement on EPF Pension 2022 PDF Download Below:-
Revised EPF Pension Latest News 2022 Calculator. Calculate your pension using the below EPF Pension Calculator:-
The Formula for EPF pension calculation as of now is given below
(Pensionable Service x Pensionable Salary)/70 .
As per the above formula, if an employee retires on 30-11-2022, and the average of Pay + DA for the previous 60 months before retirement is Rs.1,00,000 and the maximum service provided is 33 years, then he will get a pension of Rs.50,000.00 per month after adding a bonus of 2 service years by the EPFO as per their norms.
Disclaimer: This Revised EPF Pension Calculator is a likely indication of future EPF pension calculation. This should not be construed as legal advice. Let EPFO come up with a fully detailed circular and FAQs first, and then we will update this calculator accordingly.
