The Central Government had launched Employees’ Pension Scheme, 1995 in exercise of the powers conferred by Section 6A of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952). The EPS’95 scheme applies to all the employees of factories and other establishments to which the Employees Provident Funds and Miscellaneous Provisions Act, 1952 applies. Employee Pension Scheme (EPS) came into force on 16th November 1995.
Key Amendments made from time to time:
The Employees Provident Fund Organisation (EPFO) has over the period of time, modified / updated / issues many of its policies which members have to follow:
1) Increase in wage ceiling from Rs. 6500/- to Rs.15000 per month from 01.09.2014.
2) Provision of a minimum pension of Rs. 1000 per month to the pensioners under EPS, 1995 from 01.09.2014 by providing additional budgetary support wherever the pension was falling short of Rs.1000 as per pre-defined formula for calculation of pension.
3) Restoration of normal pension after completion of fifteen years from the date of such commutation, in respect of those members who availed the benefit of commutation of pension under the erstwhile paragraph 12A of the EPS, 1995, on or before 25.09.2008 vide notification G.S.R.132(E) dated 20.02.2020.
4) An individual who joined the Employees’ Provident Fund (EPF) scheme, after September 1, 2014, cannot open an Employees’ Pension Scheme (EPS) account if his/her monthly salary exceeds Rs 15,000.
5) As per the current rules of EPF scheme, an employee contributes 12% of his monthly salary to the EPF scheme and an employer matches this contribution.
6) As per the current rules of EPF scheme, an employee contributes 12% of his monthly salary to the EPF scheme and an employer matches this contribution.
7) Out of the total 24% contribution (Employee’s 12% + Employer’s 12%), employee’s 12% and employer’s 3.67% goes into the EPF account and the balance 8.67% goes into the EPS account.
8) The insurance benefit under the EDLI has been increased by 20% in addition to the existing admissible benefits.
9) The retirement body increased the maximum assurance benefit under the Employees’ Deposit Linked Insurance (EDLI) scheme to Rs 7 lakh from Rs 6 lakh. “Enhanced social security is sought to be provided to the workers without any additional cost to the employer.
10) EPFO has updated many of its schemes:
· These include PF-Aadhaar linking,
· maintenance of two PF accounts for some employees,
· rise in insurance benefit under EDLI scheme and
· adding a nominee to the employee’s PF account among others.
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