EPS-95 Benefits And Calculator: EPS-95 has recently become a big topic of discussion among pensioners. Many people want the government to increase the minimum pension given under the EPS 1995 scheme. Recently, the All Pensioners Retired Persons Association held a protest, asking that the minimum monthly pension be raised from the current Rs 1,000.
According to reports, the Employees’ Provident Fund Organisation (EPFO) is planning big changes to its rules by increasing the wage limit for mandatory provident fund and pension contributions. Did you know what EPS-95 is and how it can shape your entire retirement plan? Many people are still unclear about its benefits, eligibility rules, and how the pension is calculated. Let’s take a quick look at the basics to help you secure a better future on the financial front.
What Is EPS-95 Pension Scheme
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The scheme is a social security initiative launched by the Employees’ Provident Fund Organisation (EPFO) on November 19, 1995. It provides pension benefits to employees in the organised sector after they retire. The EPFO manages the scheme and ensures that employees receive a pension once they turn 58. The benefits of this scheme are available to both existing and new EPF members.
EPS-95 Pension Scheme: Eligibility
A Employee must be an EPFO member and complete at least 10 years of service. The regular pension starts at age 58, but you can take a reduced pension earlier or get 4% extra per year if you start at 60. If you’ve worked more than 6 months but less than 10 years, you can withdraw your EPS amount after 2 months of unemployment. Meanwhile, disabled employees and family members of employees who pass away are also eligible for pension support.
Since September 2014, any individual joining the EPF scheme can become a part of the EPS, provided their basic salary is not more than Rs 15,000 per month.
EPS-95 Pension Scheme: Benefits
The scheme provides retirement income from age 58, along with protection for employees who become permanently disabled. It also offers financial security to a member’s family in case of their death. Adding further, members can withdraw their EPS amount if they do not meet the pension eligibility criteria. The minimum pension under EPS is Rs 1,000 per month, while the maximum pension a member can receive is Rs 7,500 per month.
EPS-95 Pension: How It Is Calculated
The monthly pension an employee receives is based on their pensionable salary and pensionable service. It is calculated using a simple formula: Monthly Pension = (Average Salary × Pensionable Service) ÷ 70. The average salary is calculated using the basic pay plus DA from the last 60 months, capped at a maximum of Rs 15,000.
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