If you have seen your Provident Fund Statement then you would notice that there are three different types of contribution. The first contribution is the employee’s contribution which is basically deducted from your salary. The second type of contribution is the employer’s contribution and the amount contributed by the employer is same as your contribution
The employer contribution is divided into two parts and these two parts are the regular employer contribution and the Pension. So if you do not know this then it must be noted that a part of employer’s contribution is segregated under the pension and this fund acts as a pension fund for the employee after the retirement. The amount of the pension fund is not much but this certainly helps in meeting some of the expenses.
Is it Possible to Increase Contribution under the Pension Scheme?
A lot of people have a question and they want to know if they can really increase the contribution under the pension funds. The main reason why people want to know this is because the pension they receive is lower and it is not enough to sustain life post-retirement.
Well, the answer of this question is not available at the moment because as per one of the Supreme Court ruling at start of the year, the employee should have a way to bump the contribution cap on the pension scheme but until now the EPFO has not come clear on the issue and they have not released any official statement or notification about the same.
You would probably have to wait a little longer to get the answer to your question however, the government should certainly offer more flexibility to the people who are willing to contribute a higher amount towards their pension fund.