Unlock the Benefits of EPS 95: Comprehensive Guide to Employee Pension Scheme

The Employee Pension Scheme, commonly known as EPS 95, was introduced by the Employees’ Provident Fund Organization (EPFO) on 19th November 1995. It serves as a crucial social security measure for an employee's retirement needs. This guide offers insights into EPS, its contributions, updates, and pension types available.

EPS Contributions Explained:

EPS 95 involves contributions from both employers and employees, each contributing 12% of the employee's salary, covering basic pay and DA. Of this, 8.33% of the employer's contribution is allocated to EPS, while 3.67% goes to the Employees’ Provident Fund (EPF).

Latest Updates on EPS Pension:

On 3rd May 2023, the Ministry of Labour & Employment announced that those opting for a higher EPS pension no longer need to contribute more. The additional 1.16% over the wage ceiling is now deducted from the employer's 12% contribution. The application deadline for an upgraded pension is extended to 26th June 2023.

How to Calculate EPS Pension:

EPS 95 pension is calculated based on the average basic salary of the last 5 years and total service tenure. The pensionable salary is the average of the last 12 months' salary before EPS exit, now capped at ₹15,000 per month. A service bonus of 2 years is added after 20 years of service, with a minimum service period of 6 months required.

Types of Pensions in EPS:

EPS offers different pensions for widows, children, and orphans. Widows receive a pension until death or remarriage, and the eldest widow in case of multiple widows. Children get a monthly pension until 25 years, and an orphan pension is provided when no widow survives. A reduced pension is available after 10 years of service for those aged 50-58.

EPS Application Forms and Process:

• Form 10C: For withdrawal before 10 years of service.
• Form 10D: For monthly pension withdrawal after age 50.
• Life Certificate: To validate pensioner's status annually.
• Non-Remarriage Certificate: Required for widows/widowers.

Advantages of EPS 95:

• Assured income post-retirement.
• Pension for members with disabilities.
• Full pension withdrawal at 58 years.
• Family pension in the member's absence.

EPS 95 acts as a financial security pillar for employees post-retirement. Explore the detailed scheme and its benefits to ensure a secure retirement with EPS 95.