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Pension provides us financial security during old age when we are not able to work physically. There was already a pension system for government employees, while EPFO’s Employee Pension Scheme (EPS) is a good support for people working in private companies. If you also contribute to EPFO, then you have a chance to increase your pension. Through the Employees Pension Scheme of EPFO, now you can get the benefit of more pension. But for this you have to send your application to EPS by 3rd March.
This is a beneficial scheme, but not many people are aware of it. If you also have the same question in your mind that what is this scheme and how will the employed people get its benefits? Who can take advantage of this scheme? How much benefit will there be in this? So the team of India TV Paisa has brought you the complete details related to this scheme. You can also take full advantage of this scheme by understanding it.
What is Employee Pension Scheme
All employed people in the organized sector have to contribute to the Employees’ Provident Fund Organization (EPFO). Employees Pension Scheme (EPS) is a part of this. The Employees’ Pension Scheme was first introduced in 1995. Earlier the maximum pensionable salary was fixed at Rs 6500, which was increased to Rs 15000 in the year 2014. Employees contribute 12% of their basic salary and dearness allowance to EPFO. The amount to this extent is contributed by the company or the employer. 8.33% of the amount that the employer contributes to this fund goes to EPS and 3.67% goes to EPF every month. This amount along with interest is returned to the employee after retirement.
How to get more pension
The Supreme Court in November 2022 upheld the Employees’ Pension (Amendment) Scheme, 2014. Earlier, the EPS revision of August 22, 2014 raised the pensionable salary limit from Rs 6,500 per month to Rs 15,000 per month. Also, the members and their employers were allowed to contribute 8.33 per cent of their actual salary to the EPS.
how to get benefit
Looking at the decision of the Supreme Court, two categories of eligible employees were created for this scheme. The first category is for those employees who were members of EPS before September 1, 2014 and opted for higher pension. These people were already contributing more to EPS, but EPFO rejected their application. In the second category, those employees were included, who were members of EPS as on September 2014, but could not opt for higher pension by submitting the form. Now, following the order of the Supreme Court, such members have been given time till March 3.
how to apply
- For higher pension, the EPS member has to fill the form issued from the nearest EPFO office and submit the necessary documents.
- Both the employee and the employer have to give the declaration.
- If there is a need for adjustment of amount from PM to Pension Fund, then the employee in the joint form will have to give consent.
- In cases of transfer of funds from exempted PF trust to mansion fund, the trustee will have to submit an undertaking.
- The method of depositing funds and calculation of pension will be notified by issuing a separate circular.
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