Dear Seniors,
One of our employees has raised a question that by enhancing ceiling of contribution to Pension fund ie from 8.33% of Rs. 6500/- to 8.33% of Rs. 15000/- has decreased contribution to their PF fund by the employer. They are losing Rs. 700/- per month from their part.
Isn't it a valid question?
Regards,
Sandeep Kumar Rai
From India, Bangalore
1One of our employees has raised a question that by enhancing ceiling of contribution to Pension fund ie from 8.33% of Rs. 6500/- to 8.33% of Rs. 15000/- has decreased contribution to their PF fund by the employer. They are losing Rs. 700/- per month from their part.
Isn't it a valid question?
Regards,
Sandeep Kumar Rai
From India, Bangalore
Dear Mr.Sandeep Kumar Rai,
I feel your question is regarding pension contribution. Because after ceiling hiked to Rs. 15000, PF contribution will be 1800/- instead of 780/- . Here difference is 1020/-. But pension contribution will be enhanced from 541/- to 1250/- with a hike of 709/-.
For one month additional contribution of Rs. 709/, the member will get a hike of about Rs. 39 in pension for life long. After member's death spouse and children will also get its benefit. If the member completes 20 year pensionable service, 2 years bonus will be granted to him/her which enable further enhancement.
Abbas.P.S
From India, Bangalore
I feel your question is regarding pension contribution. Because after ceiling hiked to Rs. 15000, PF contribution will be 1800/- instead of 780/- . Here difference is 1020/-. But pension contribution will be enhanced from 541/- to 1250/- with a hike of 709/-.
For one month additional contribution of Rs. 709/, the member will get a hike of about Rs. 39 in pension for life long. After member's death spouse and children will also get its benefit. If the member completes 20 year pensionable service, 2 years bonus will be granted to him/her which enable further enhancement.
Abbas.P.S
From India, Bangalore
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PF Notification for enhancement of wage ceiling & Pension wef 1-Sep-14.pdf