There are reports that government officials have informed that calculation of higher pension will be possible only after June 26. Only after the last date for submission of pension application, the details like how many applications received, number of eligible applicants and total contribution to the pension fund will be clear. Calculations can be made only on this basis. But at present no decision has been taken on this matter according to reports.
How is pension currently calculated?
Now, the last sixty months salary of the employee is multiplied by the years of service. Then the pension is calculated by dividing by 70. Service from November 16, 1995 onwards will be counted. Those with more than twenty years of service will get two years weightage.
The government can change the current pension formula if necessary. This is stated in the declaration in the application. PF members submit the option in anticipation of the pension to be received under this formula. But the worry is that if the government changes the scheme, the pension will decrease. Once accepted by the employer, the option cannot be withdrawn later.
There is now a facility on the EPFO website to delete the currently submitted option and submit a new option but it is a facility provided for correcting mistakes in the originally submitted application. EPFO has released a calculator to calculate pension arrears. Through this it is possible to understand the past contribution to the pension fund.
On November 4, the Supreme Court ruled that higher pension should be paid based on actual salary. EPFO has so far received around 1.4 million applications under the Employee Provident Pension Scheme. As there is time to apply till June 26, it is estimated that there will be more applicants.
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