EPFO Wage Ceiling Hike Could Raise EPS Pension

The government has approved a higher salary limit for joining EPFO, increasing it from Rs 15,000 to Rs 25,000 per month.

This could allow more workers to receive benefits under the Employees' Pension Scheme, or EPS.

The pension amount depends on a worker's pensionable salary and eligible years of service.

The basic formula multiplies salary by service years and divides the result by 70.

Workers with at least 20 years of eligible service may receive an additional two years in the calculation.

For example, 30 years of service could be counted as 32 years.

Using a Rs 25,000 salary, this example gives an estimated pension of Rs 11,429 a month.

These figures are only illustrations, and the higher limit does not guarantee an increase for people already receiving pensions.