The basic salary and dearness allowance (DA) are added to the salary for the purpose of EPS scheme i.e. Employee Pension Scheme. Due to this, now according to the changed rules, if an employee’s basic pay i.e. basic salary and DA is mixed with 15, If an amount of more than Rs. 000 per month is made, then he will no longer be eligible for EPS EPS. Employee pension scheme (EPS) Employee Pension Scheme (EPS) is a social security scheme primarily for the benefit of employees.
It is run by the Employees Provident Fund Organization (EPFO). The scheme provides pension to those employees who are employed in the organized sector at the age of 58. The benefit of this scheme is given only to those who have been employed for at least 10 years. The special thing is that it is not mandatory to have continuous service time in it.
A member of the scheme becomes eligible for pension benefits after retiring at the age of 58 years. If a member has not been in service for 10 years before the age of 58, he can withdraw the entire amount by filling Form 10C at the age of 58, but will not get the monthly pension after retirement. EPFO member who becomes permanently handicapped will get a monthly pension even if he has not done the required 10 years job.
This is the eligibility to join EPS
First of all, you must be a member of EPFO Member EPFO.
– Your job must be completed for at least a decade i.e. 10 years.
– It is mandatory to have an age limit of 58 years.
– If you are 50 years old, then till this age limit, you can withdraw your EPS amount at lower rates.
In this scheme, you can also postpone your pension till the age of 60 years. After doing this you will be paid pension at an additional rate of 4 percent per year.
After retirement, how much pension you will be given every month under EPS depends on how much your salary amount has been eligible for pension. Also, for how many years you have rendered pensionable services. Monthly pension amount of any PF PF account holder member is calculated by this formula. In this, pension = Salary X is made on the basis of year of service / 70. The pensionable salary of any PF account holder is equal to the average of his monthly salary of one year ie 12 months. Similarly, the actual service period of a member of EPFO is considered as pensionable service of that employee. At the time of calculating pensionable service term, the duration of service ie service period with many companies, employers is added.
