Employee Pension Scheme Change Rule: The Central Government has made a big change in the Pension Scheme of its employees! Under this change, the new central employees were out of the purview of the old pension scheme.
The government has started the National Pension System (NPS) for such employees. This scheme was made mandatory for all government employees appointed after January 1, 2004. Now the Modi government has made an important change in the pension scheme! Let’s know what is that change!
Employee Pension Scheme Change Rule
The government has given exemption to the government employees associated with the Employees’ Pension Scheme to join the ‘old pension scheme’. The benefit of this decision of the government will be given to those central employees who were finally selected before January 01, 2004 but were appointed after January 01, 2004.
The Employees Pension Scheme was implemented in the year 1995 to cater to the organized sector employees. This scheme is applicable for all the employees who are covered under the Employees Provident Fund (EPF) scheme.
The employees covered under this scheme will get pension on a permanent basis, on the death of the employee, the amount of pension will be finally transferred to the family members. This article is an account on the various aspects of the scheme that every employee and employer should be aware of.
What are the rules for EPS now?
When we start working and become members of Employees Pension Scheme, we also become members of EPS! An employee gives 12% of his salary in EPF (EPS) similar to his company! But a fraction of that is going for 8.33 eps! As we mentioned above,
the current maximum pension salary is only 15 thousand rupees, ie the maximum share of monthly pension (8.33% of 15000) is 1250 rupees!
Even after the employee retires, the maximum salary for pension calculation is considered to be Rs 15,000, which means that the maximum pension per employee under the Employees Pension Scheme is Rs 7,500. can be obtained!
Pension is calculated as
If you start contributing to the Employees Pension Scheme before 1st September 2014, you should note that the maximum salary limit for pension contribution is Rs. If you have joined EPS after 1st September 2014, then the maximum salary limit is 15,000. Let us know how the pension is calculated.
eps calculation formula
Monthly Pension = (Pensionable Salary x EPS Contribution Years) / 70
Here, suppose the employee starts contributing to EPS after 1st September 2014, then the pension contribution
- Will be Rs. Suppose he worked for 30 years!
Monthly pension = 15,000X30/70 = Rs 6428! - Eligibility for Pension: Employee Pension Scheme Change Rule
The employee must be a member of the Employee Provident Fund Scheme! - This employee should have at least 10 years of service.
- The employee has attained the age of 58 years.
Pension can be claimed at the age of 50, but there will be a reduction in the amount of pension. extracted like this
The pension given is known as ‘low pension’.
The employee is entitled to defer receipt of his pension till the age of 60 years. In such a scenario, each
There will be an increase of 4% in the creditable pension for the deferred year.
Employees are entitled to receive pension in case of disability.
Another thing to note is that the maximum and minimum pension of 6 months or more
Employees Pension Scheme (Employee Pension Scheme) 1 year of service is considered! And it is not counted when it is less!