The Workers’ Provident Fund Organisation (EPFO) on Monday allowed the withdrawal of accumulations in Workers’ Pension Scheme (EPS-95) for subscribers who’ve lower than six months of service left. Earlier, the EPFO members with lower than six months left in service have been allowed to withdraw the accumulations of their Workers’ Provident Fund (EPF) account solely.
What’s EPS?
Workers’ Pension Scheme 1995 or EPS-95 is a social safety scheme which was launched in November 19, 1995 by the EPFO. The scheme entitles the workers working within the organised sector for a pension after their retirement on the age of 58 years.
Who’s eligible for EPS?
All workers who’re eligible for the EPF scheme are be eligible for EPS nonetheless, the advantages of the EPS may be availed provided that the worker has been in service for no less than 10 years (this doesn’t should be steady service). The scheme’s advantages can be found to each present in addition to new EPF members.
Who contributes to EPS?
Each the worker and the employer contribute 12 per cent of the worker’s primary wage and Dearness Allowance (DA) to the EPF. Whereas the complete portion of worker’s contribution goes to EPF, the employer’s contribution goes to EPS at a charge of 8.33 per cent.
What are the advantages below EPS?
Pension on retirement on the age of 58 years
An EPS member turns into eligible for pension as soon as they retire on the age of 58 years. Nevertheless, it’s necessary for them to be in service for no less than 10 years earlier than turning 58 and availing pension advantages. An EPS Scheme Certificates is generated which can be utilized to fill Kind 10D for withdrawing the month-to-month pension.
Full withdrawal on leaving service earlier than turning into eligible for month-to-month pension
If a member isn’t in a position to stay in service for 10 years earlier than turning 58 years previous, he/she will be able to withdraw the whole sum invested to this point after turning 58 years by filling Kind 10C. Nevertheless, he/she is not going to get month-to-month pension advantages put up retirement.
Pension on complete disablement through the service
An EPFO member who turns into disabled completely is entitled to a month-to-month pension no matter the truth that he/she has not served the pensionable service interval. On this case, the employer has to deposit funds within the involved worker’s EPS account for no less than one month to be eligible for the pension.
The member turns into eligible for month-to-month pension from the date of everlasting disablement and is paid for lifetime. Nevertheless, the member might should endure a medical examination to find out whether or not he/she is unfit for his or her job earlier than turning into disabled.
Household pension on the loss of life of the member
A member’s household turns into eligible for the pension advantages within the following circumstances: 1) In case of loss of life of the member whereas in service and the employer has deposited funds in his EPS account for no less than one month 2) In case the member has accomplished 10 years of service and dies earlier than attaining 58 years of age 3) In case of loss of life of the member after the graduation of the month-to-month pension.