EPS: Employers will have to make additional contribution for more pension, not employees
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New Delhi : An important information for lakhs of employees working in government and private sector. It is reported that for more pension, not the employees, but the employer will have to make additional contribution. According to media reports, the additional contribution of 1.16 per cent of the basic salary of the subscribers opting for higher pension will be managed by employers’ contribution to social security schemes run by the Employees’ Provident Fund Organization (EPFO).
Labor Ministry decided
According to a report in the news agency Bhasha, the Ministry of Labor has said in a statement released on Wednesday evening that it has been decided to take an additional contribution of 1.16 per cent out of the total 12 per cent contribution of the employers in the provident fund. The ministry said that the spirit of the EPF and MP Act as well as the Code (Code on Social Security) do not envisage contribution to the pension fund from the employees.
Government pays 1.6 percent
At present, the government pays 1.16 per cent of the basic salary up to Rs 15,000 as subsidy for contribution to the Employees’ Pension Scheme (EPS). Employers contribute 12 per cent of basic salary to social security schemes run by EPFO. Of the 12 per cent contribution by the employers, 8.33 per cent goes to the EPS and the remaining 3.67 per cent is deposited in the Employees’ Provident Fund.
Employees will not have to pay extra
According to the statement issued by the Labor Ministry, now all those EPFO members who are opting to contribute their actual basic pay in excess of the limit of Rs 15,000 per month to get higher pension, will have to contribute this additional 1.16 per cent towards EPS. Don’t have to contribute 100%. The Ministry of Labor and Employment has issued two notifications on May 3, 2023, implementing this decision. The Ministry has said that with the issuance of the notification, compliance of all the instructions of the Supreme Court’s decision of November 4, 2022 has been completed.
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