Stories
Pension Calculation: Big Boost for Private Employees' Pension After 25 Years of Service!
N
News18•04-10-2026, 14:10
Pension Calculation: Big Boost for Private Employees' Pension After 25 Years of Service!
- •Central government increases basic salary limit for Employees' Provident Fund and monthly pension scheme.
- •The limit has been raised from Rs 15,000 to Rs 25,000 after a 12-year wait.
- •This decision will directly increase monthly pension for private employees by 66.6 percent.
- •For 25 years of service, monthly pension will rise from Rs 5,786 to Rs 9,643, an increase of Rs 3,857.
- •For 30 years of service, pension will increase from Rs 6,857 to Rs 11,429, providing a benefit of Rs 4,572 per month.
Key Questions Answered
The central government has increased the basic salary limit for the Employees' Provident Fund and monthly pension scheme from Rs 15,000 to Rs 25,000 per month.
With a 2-year service bonus bringing total considered service to 27 years, the monthly pension under the new Rs 25,000 limit increases from Rs 5,786 to Rs 9,643.
Under the new limit of Rs 25,000, companies are required to deposit Rs 2,083 per month into the pension fund, up from the previous maximum of Rs 1,250.
