UPS: Private job holders can get more pension than their last salary, the amount will be in lakhs

 

UPS Private job holders can get more pension than their last salary, the amount will be in lakhs

Pension Schemes For Private Employees: About 23 lakh employees of the Central Government will get the benefit of Unified Pension Scheme (UPS). But there are many such pension schemes for private employees as well, in which employees can get more pension than their last salary by making continuous contribution. Let’s know how.

New Delhi. The central government has recently approved the Unified Pension Scheme i.e. UPS. Its benefits will be available to about 23 lakh employees of the central government. If the state government employees are included, then this number goes up to about 90 lakhs. Under UPS, the government is guaranteeing pension to the employees in which after working for 25 years, 50 percent of the basic salary will be given as pension. The pension amount will be 50 percent of the average basic salary of the last 12 months. At the same time, employees who have worked for at least 10 years will also be entitled to a monthly pension of Rs 10,000. After the death of the pensioner employee, 60% of his pension will be given to his family.

But now the question arises that there are about 5 crore private employees in the country. Does the government not care about their pension related needs? Is there any such scheme of the government for private employees which can become a support for their old age. Is the government running any guaranteed pension scheme for such employees? So the answer is yes. There are many such schemes of the government for private employees in the country in which by making continuous contributions, private employees can get more pension than their last salary. Let’s know how.

Private employees can invest in EPS for pension

Private job holders get pension facility under Employees Provident Fund Organization (EPFO). PF account holders are given the benefit of pension under EPS-95. According to the rules of EPFO, any employee becomes entitled to get pension after working for 10 years. This scheme guarantees pension benefits to eligible employees who reach the age of 58 years.

This is how you can contribute to PF from your salary

A large part of the salary of people working in the private sector is deducted as PF, which is deposited in the employee’s PF account every month. If you work in a private job for 10 years, you become entitled to pension. According to the rules, 12% of the employee’s basic salary + DA is deposited in the PF account every month. Out of which the employee’s entire share goes to EPF, while 8.33% of the employer’s share goes to the Employees’ Pension Scheme (EPS) and 3.67% goes to EPF contribution every month.

This is how you can contribute to PF from your salary

A large part of the salary of people working in the private sector is deducted as PF, which is deposited in the employee’s PF account every month. If you work in a private job for 10 years, you become entitled to pension. According to the rules, 12% of the employee’s basic salary + DA is deposited in the PF account every month. Out of which the employee’s entire share goes to EPF, while 8.33% of the employer’s share goes to the Employees’ Pension Scheme (EPS) and 3.67% goes to EPF contribution every month.