Here’s is a good news for subscribers of the Employee’s Provident Fund Organisation (EPFO) under Employee Pension Scheme (EPS). Once can now increase his/her monthly pension amount following the Supreme Court’s order in April this year which upheld a Kerala High Court verdict on monthly pension from the Employees’ Pension Scheme 95 (EPS 95).
Earlier, the Kerala high court had asked the EPFO to give full pension to EPS subscribers while scrapping a 2014 notification of the pension body.
As per the verdict, EPFO subscribers will get pension on basis of their full last drawn salaries.Usually a part of the employer’s contribution towards EPF is put in the EPS as mentioned in the EPFO rules. A subscriber’s pension depends on the number of years of his/her service and last drawn salary.
Monthly pension = Total years of job x last drawn salary divided by 70.
However, following the SC order, salary considered for pension calculation is Rs 15,000. Now the monthly pension is calculated as per this formula:
Pension per month = Total years job x Rs 15,000/70