EPFO Pension Scheme: Employees' Pension Scheme (EPS) is a retirement scheme, which is managed by the Employees' Provident Fund Organisation (EPFO). This scheme is to provide social security to retired employees working in the organized sector, who have retired at the age of 58 years. EPS was launched in the year 1995. Every employee working in the organized sector has an account in EPF.
The special thing about this scheme is that if a person continues to work even after the age of 58, he is still entitled to an EPS pension. That is, he can take a pension even while continuing the job.
Under this scheme, the company deducts 12% every month from the basic salary of the employee and the company also contributes the same amount. The entire contribution of the employee is deposited in EPF and 8.33% of the employer or company's contribution is deposited in the Employees' Pension Scheme (EPS) and 3.67% in EPF every month. The EPS 95 scheme applies to all employees of companies and establishments to which the Employees' Provident Fund and Miscellaneous Provisions Act, 1952 applies.
It is necessary to work for 10 years to get a pension.
Only those people who are EPFO subscribers get the benefit of the EPS Pension Scheme (Pension under EPS 95). According to the rules of EPFO, every employee who contributes to EPF, whose job has been completed for 10 years and whose age is more than 50 years, becomes eligible to get a pension. If the total period of employment is less than 10 years, then the amount deposited for pension can be withdrawn anytime in between.
Can you claim a pension if you are less than 50 years old?
If an EPFO subscriber has completed 10 years of service but his age is less than 50 years, then he cannot claim for pension. In such a situation, after leaving the job, you will only get the funds deposited in EPF.
What will be the amount of pension received before 58 years?
If an employee has worked for 10 years and his age is between 50 years and 58 years, then he is entitled to get a pension, but the amount he will get as a pension will be less. That is, if you have worked for 10 years, then after the age of 50 years you can claim an early pension. However, on claiming an early pension, a 4 percent pension is reduced every year. For example, if an EPFO member wants a monthly pension at the age of 55, then he will get only 88 percent (100% – 3×4) of the pension amount.
Provision of disabled pension under EPS 95
Let us tell you that there is also a provision for disability pension under EPS 95. It provides financial assistance to those members who become permanently or completely disabled during their service. The condition of age and contribution to the pension fund for 10 years does not apply to such members. If a member has contributed to EPS for even two years, then he is entitled to this pension.
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