EPFO Pension Latest News Today 2024: Everything You Need to Know

The EPFO pension scheme is a vital social security benefit for millions of Indian workers. It provides a monthly pension to subscribers after they retire.

The EPFO pension scheme is administered by the Employees' Provident Fund Organisation (EPFO), a statutory body under the Ministry of Labour and Employment. EPFO has over 6.5 crore subscribers.

The EPFO pension scheme offers a guaranteed return of 8.5% per annum on the accumulated corpus. This means that subscribers can expect a decent return on their investment.

The EPFO pension scheme is mandatory for all establishments with 20 or more employees, making it a crucial social security benefit for Indian workers.

The EPF interest rate is reviewed annually by the Central Board of Trustees after consultation with the Ministry of Finance. The current interest rate for 2024 is 8.25%.

EPFO members can expect to earn a decent interest on their provident fund, with the interest rate varying from year to year. For instance, in 2016-17, the interest rate was 8.65%.

Here's a breakdown of the EPF interest rates for the last five years:

The EPFO has also made it easier for members to opt for higher EPS pension by extending the deadline multiple times. The current deadline to apply for higher EPS is available online on the member Sewa website.

If you're an EPFO member who retired before September 26, 2008, you may be eligible for a higher pension if you opted for commutation. The government has notified higher pension for 6.3 lakh EPS pensioners who opted for commutation.

The EPFO is also considering extending medical benefits to its pensioners. This move will help pensioners living in remote areas who don't have to travel to EPF offices or banks to file paper-based life certificates.

If you're an employee, you contribute 12% of your basic salary plus dearness allowance (DA) to your EPF account. This contribution is mandatory.

In some cases, the employee contribution is lower, at 10%, if the employer has less than 20 employees or is in certain designated industries such as Jute, Beedi, Brick, etc.

The employer also contributes 12% of the employee's basic salary plus DA to the EPF scheme.

The employee contributes 12% of basic salary plus dearness allowance (DA) towards its EPF account. The employee has to contribute a lower contribution of 10% in case the entity has less than 20 employees and or if the entity is certain designated industries such as Jute, Beedi, Brick, etc.

The employer contributes a similar amount to the scheme (12% of employee’s basic salary plus DA).

8.33% of such employer contribution goes towards the Employee Pension Scheme (EPS) subject to a ceiling of 1,250 per month if the salary of the employee is 15,000 or more. The rest 3.67% is added to the EPF account of the employee.

The employer also contributes 0.50% towards Employees’ Deposit Linked Insurance (EDLI) account of the employee.

The employee can also voluntarily contribute higher than the statutory requirement of 12% and is called contribution towards Voluntary Provident Fund (VPF) which is accounted separately.

Qualifying for standard deduction is a straightforward process. The pension received from EPFO is taxable under the head salary.

You can claim a standard deduction on your taxable income. This deduction is available for all pensioners receiving EPFO pensions.

For example, if you receive a pension of ₹50,000, you can claim a standard deduction of ₹40,000, making your taxable income ₹10,000.

Over 17.4 lakh EPFO members have applied to base their pension contributions on their full salary following a Supreme Court ruling.

The Employees Provident Fund Organisation (EPFO) has extended the deadline for the third time to apply for higher EPS from June 26, 2023 previously.

EPFO has activated the link on the Member e-Sewa portal for eligible EPF members to submit their application for higher pension under Employees' Pension Scheme.

Over 8,897 beneficiaries have applied online for higher pension as of the latest update, and 91,258 online applications have been received from retired EPS members.

The Supreme Court upheld the 2014 amendments to the EPS 95 Scheme, allowing subscribers to opt for higher pensions but striking down the member contribution of 1.16%.

The EPF interest rate is reviewed every year by EPFO's Central Board of Trustees after consulting with the Ministry of Finance. This process helps determine the interest rate for the upcoming year.

For instance, the PF interest rate for 2024 has been fixed at 8.25%.

The interest rate has remained relatively stable over the past few years, with some minor fluctuations.

Let's take a look at the EPF interest rates for the last five years:

The interest rate for 2020-2021 and 2021-2022 was 8.55%, showing a slight decrease from the previous year.

The Employees Provident Fund Organisation (EPFO) has been making efforts to make the process of claiming higher pension easier for its members. The deadline to opt for higher EPS pension has been extended multiple times, with the latest deadline being June 26, 2023.

Over 17.4 lakh EPFO members have opted for higher pension on higher contribution under EPS-95, as per a recent update to Parliament. This is a significant number, and it's great to see that many members are taking advantage of this opportunity.

The EPFO has also introduced a digital life certificate facility, which allows pensioners to submit their life certificates online. The deadline for submitting digital life certificates has been extended multiple times, with the latest deadline being March 31, 2023.

Pensioners can submit their digital life certificates online through the Jeevan Pramaan Patra programme. This is a convenient option for those who may not be able to physically visit the EPFO offices.

The EPFO has received over 91,258 online applications from retired EPS members who are eligible for higher pension. This is a significant number, and it's great to see that many members are taking advantage of this opportunity.

Here is a list of the key deadlines for submitting applications for higher pension:

Note: The deadlines mentioned above are subject to change, and members are advised to check the EPFO website for the latest information.

The EPFO has seen a significant increase of about 6.2 crore members in the last 6 years. This growth is a testament to the importance of social security schemes in India.

In May 2024 alone, the EPFO witnessed 19 lakh new registrations. This is a remarkable achievement, demonstrating the EPFO's ability to adapt to the changing needs of the workforce.

Discussions are underway to enhance employment opportunities by engaging with industry stakeholders. This collaboration aims to create a more favorable environment for job creation and economic growth.

Plans include raising the minimum EPFO pension and implementing new labor laws. These initiatives will likely have a positive impact on the lives of millions of workers who rely on the EPFO for their social security benefits.

The EPF governance structure is headed by a Central Board of Trustees (CBT) that includes representatives from the government, employers, and employees. The CBT is responsible for making key decisions regarding EPF policy.

The EPF policy allows employees to contribute a portion of their salary to the fund, which is then invested to generate returns. The current contribution rate is 12% of the basic salary, with 8.33% going to the EPF and 3.67% to the Employees' Pension Scheme (EPS).

The EPF has a robust policy framework in place to ensure the fund's sustainability and growth. This includes a provision for partial withdrawal of funds for certain purposes, such as buying a house or paying for higher education.

The EPS formula has undergone changes over the years, with the EPFO tweaking it in 2014.

The formula for calculating pension under Employees' Pension Scheme (EPS) is based on the employee's salary and the number of years of service.

The employer contributes 8.33% of the employee's basic salary plus DA towards EPS, subject to a ceiling of 1,250 per month if the salary is 15,000 or more.

This contribution is added to the employee's EPS account, and the pension is calculated based on this amount.

The EPFO has released a circular clarifying the method of pension computation for those who opt for higher EPS pension.

The EPFO has issued guidelines for eligible employees to apply for higher pension under the Employees Provident Scheme (EPS). The last date to apply for higher pension is March 3, 2023.

To get higher pension, an EPFO member who retired before September 26, 2008, can opt for commutation, which allows them to get a maximum of one-third of their pension as a lump sum. The remaining two-thirds is paid as a monthly pension for their lifetime.

The EPFO issued a circular on February 20, 2023, providing guidelines on how to apply for higher pension. This circular can be read in full to understand the process.

Eligible employees can apply for higher pension online through the member Sewa website, which is available irrespective of whether their EPF account is held with a private trust or the EPFO.