I understand that pensionable salary does not have any more ceiling of Rs. 15000/- per month. It can be complete basic salary. Can I opt for such hike when I am left with last 5 years? Because pension is calculated based on last 5 years of pensionable salary component. That way I need not block higher component from right now. I am 47 yrs old. Pl advise.
How can you HIKE your salary?
I have not asked how to hike the salary. I have asked what is the right time to apply to increase the pensionable salary from 15000 to higher amount. E.g.
If my current basics salary is Rs. 50000/-. Out of 12% of employer contribution, 8.33% is going for pension contribution but as ceiling is of 15000, 8.33% of 15000 is only going towards pension contribution. Supreme Court has ordered that contribution towards pension could be as high as 8.33% of actual basic salary. So now, I can opt to contribute 8.33% of 50000/-. I want to understand if I can hike this just before 5 yrs of job life or I have to opt right now.
Do you think contributing more towards EPS is a right strategy to create your retirement income? EPS will not earn a single rupee. They just keep that money with them and pay you a pension at a later stage.
I am sorry but not clear about your answers. I am asking something different and your answers are in form of some different questions? Not clear what exactly you are trying to convey.