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The central government has recently launched the Unified Pension Scheme i.e. UPS. It has started and will benefit about 23 lakh central government employees. If state government employees are included, this number becomes about 90 lakh. Under UPS, the government is guaranteeing pension to the employees, under which 50 percent of the basic salary will be given as pension after 25 years of service. The pension amount will be 50% of the average basic salary of the last 12 months.
Along with this, employees who work 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 paid to the 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 needs? Is there any government scheme for private employees to help them in old age? Is the government running any guaranteed pension scheme for such employees? So the answer is yes.
There are many government schemes for private employees in the country, in which by making regular contributions, private employees can get more pension than their last salary. Let's know how.
Private employees can invest in EPS for pension
Pension facility is available for private job holders under the Employees Provident Fund Organization (EPFO). PF account holders are given pension benefits under EPS-95.
According to EPFO rules, any employee becomes eligible for pension after 10 years of service. 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 are in a private job for 10 years, you also become eligible for 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 the employer's share of 8.33% goes to the Employee Pension Scheme (EPS) and 3.67% goes to EPF contribution every month.
Private employees can get more pension than salary
According to the Economic Times, if you are starting a job in the private sector and your basic salary is Rs 14,000 and you get a 10% salary hike annually, then you can qualify for the National Pension Scheme. (NPS) and can opt for the Employees Provident Fund. (EPS) By contributing regularly to schemes like these, you can get a monthly pension of Rs 2.9 lakh. This amount will be more than the last basic salary (Rs 2.44 lakh) after 30 years of service.