Whoever said wishes don’t come true hasn’t explored our offers!
  • Guide to Understanding the Employee Pension Scheme

    Guide to understanding the Employee Pension Scheme (EPS) 1995

    As per the latest changes in the Employee Pension Scheme that are effective since 1st September 2014, the EPF is distributed as 12% of the employee’s salary goes into the EPF account and 12% of the employer's salary is divided into 3.67% for EPF, 8.33% for EPS, 0.5% for EDLI 1.1% as EPF admin charges and 0.01% as EDLI Admin charges. The minimum pension under EPS is Rs 1000 and EPF is mandatory for those employees drawing a salary less than Rs 15,000 a month. EDLI cover for each employee has been raised from Rs 1.56 Lakh to Rs 3 Lakh

    Guide to understanding the Employee Pension Scheme (EPS) 1995

    • Employees are automatically enrolled into the EPS scheme only if they are members of the EPF scheme.
    • The central government also contributes to an employee’s EPS along with employer contribution of 8.33% of the salary. Central government contributes 1.16% of the employee’s salary but salary is considered as basic pay plus daily allowance and is taken as a maximum of Rs 6500
    • Contributions made to the EPS by the employee does not generate any interest.
    • Eligible service is calculated in intervals of 6 months. If an employee has had a service of more than 6 months it is rounded to the next year and less than 6 months is rounded to the previous year. For example if an employee has had a service of 18 years and 8 months, the service is considered as 19 months and if the employee has had a service of 18 years and 4 months, the service is considered as 18 years
    • Pension received is lifelong and passes on to spouse and two children upon the employee’s death
    • Employees can receive only pension from EPS and are eligible only after completion of 10 years of service and must have attained the age of 50 years for early pension and 58 years for regular pension

    Availing the Pension

    The employee pension under EPS is calculated for 2 categories. One is for those who joined prior to 15th November 1995 and one for those joining post this date. Upon completion of 10 years of service, a person is eligible for the scheme certificate and can claim pension upon attaining the age of 58 or 50. One can also withdraw the EPS amount as long as they have not completed 10 years of service. Upon withdrawal, the employee receives the employee and employer EPF contribution and the interest earned on this EPF. The number of years served under 10 are multiplied with a proportion of wages during exit

    The employee can avail pension through superannuation where he/she has completed 10 years of service, is above the age of 58 and can continue working but no fresh EPF contributions will be made. They can take early pension where they have finished 10 years of service, attained age of 50 to 58 and are not working, if the employee is unfit to perform the job due to total or permanent disability and/or in case of death of the employee during or after service. In cases of death, the pension will be paid to spouse and 2 children below the age of 25

  • reTH65gcmBgCJ7k - pingdom check string.
    reTH65gcmBgCJ7k - pingdom check string.
    This Page is BLOCKED as it is using Iframes.