Understanding the 4% Pension Increase: What Does the Latest EPFO Notification Mean for You?

Dear All,

Greetings for the day.

Please find attached the 4th EPF notification regarding a 4% increase in pension for each year on deferring the drawl of pension after 58 years but not later than 60 years of age.

Thanks & Regards,

Sumit Kumar Saxena

Dear friends,

As per the new amendment, the pensionable amount of Rs. 1000 will be Rs. 1082 at 60 years. However, if we open a Recurring Deposit for 2 years with a monthly payment of Rs. 1000 at the rate of 10% per annum, after 2 years, this will become Rs. 26,447. For one year, the interest on this amount at 10% will be Rs. 2645 (monthly Rs. 220). By adding this Rs. 220 to the existing Rs. 1000, you will get Rs. 1220 per month in addition to a principal amount of Rs. 26,447.

Abbas.P.S