The Central government has notified the much-awaited minimum monthly pension of Rs 1,000 per month to the Employees’ Pension Scheme holders. This scheme is managed by EPFO (Employees’ Provident Fund Organization).
Employees Provident Fund & Employees’ Pension Scheme:
Every month 12% of your “salary” is contributed towards EPF account.
Your employer also contributes 12% of the salary to your EPF a/c. But out of this 12%, 8.33% goes towards EPS and only 3.67% is invested in Employees’ Provident Fund (EPF). You receive the pension amount from The Employees’ Pension Scheme.
Apart from EPF and EPS , your employer also bears three more expenses.
- Contribution towards Employees’ Deposit Linked Insurance(EDLI) – 0.5% of your salary
- EPF Administrative Charges – 1.1% of your salary
- EDLI Charges – 0.01% of your salary
(The “Salary” definition for the purpose of EPF is “ Basic salary + Dearness Allowance + Allowances).
The central government recently released a notification regarding the Employees’ Pension Scheme. Let us now look at the new amendments.
- Under the modified scheme, the minimum monthly pension for widows has been fixed at Rs 1,000 and for children at Rs 250 per month. Similarly for the orphans it has been fixed at Rs 750 per month.
- The amended scheme also provides that the “Pensionable Salary” will be the average monthly pay drawn during the contributory period of service for 60 months preceding the date of exit from membership of the pension fund. Earlier the pensionable salary, which became the basis for computation of pension, was an average monthly pay drawn for 12 months.
- 50 Lakh more formal sector workers can become EPF a/c holders.
- 28 Lakh pensioners will gain from the minimum pension entitlement of Rs 1,000
Latest Article (29-Nov-2017) – ‘How to get higher EPS Pension? Details about the latest Supreme Court Judgement.‘
Inform about these changes to your EPF a/c’s nominee too. Cheers!
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i gave annexure K to transfer 1993 joined Pf 17 years of service of old EPS account to current UAN account with non contribution for one years as probationary period and now service of 9 years in current job, how they calculate the basic salary(DA+Bsic) as 15000, or both 6500, 15000,for the new service.
Greetings Mr. Srekanth, I would like to know if there has been any PF pension amendment act passed recently? If yes, then please update me regarding the same. Thanks.
Dear Madhavi,
You may kindly go through below article :
* EPS Pension Commutation (or) Lump-sum Part-Withdrawal of EPS Pension | Latest Amendment
* New EPF Rules 2021 | Latest Amendments
Sir,
This article is useful for eps 95 pensioners in India.
Me being an eps 95 pensioners has subscribed to your website to know the latest updates for which I am thankful.
pfrda
Thank you dear dastagiri ji..
Keep visiting ReLakhs!
Dear Mr. Sreekanth Ji.Reddy,
i served private 5 organisations from 1995 till 2021, every time i opted PF withdrawal when resigned from an organization. what benefits can i get out of EPS ?
Now, Can i merge all EFPF accounts for availing EFPF pension scheme ?
What is the procedure to linkup my old 4 EPS accounts to the fifth existing PF/EFPF Account ? what are the necessities ?
Dear rajivRG,
Did you withdraw EPS balance(s) from all your previous four EPF accounts?
Yes Boss, just need to connect my services for EPS/EFPF.
Dear rajivRG,
As you have withdrawn your EPS balance(s), your service periods do not get carried forward.
Kindly read : What happens to EPS on Transfer of EPF account (or) when you switch Jobs?
Dear Sir,
EPS not withdrawn but PF has been withdrawn, as i served private 5 organisations from 1995 till 2021, every time i opted only, PF withdrawal when resigned from an organization. what benefits can i get out of EPS ?
Now, Can i merge all EFPF accounts for availing EFPF pension scheme ?
What is the procedure to linkup my old 4 EPS accounts to the fifth existing PF/EFPF Account ? what are the necessities ?
Dear rajivRG,
Yes, you can merge the EPS a/cs and claim Periodic pension.
You need to get the funds transferred from previous accounts to the latest one..
Related article : What happens to EPS on Transfer of EPF account (or) when you switch Jobs?
Dear Mr. S.Reddy,
i served private 5 organisations from 1995 till 2021, every time i opted PF withdrawal when resigned from an organization. what benefits can i get out of EPS ?
Now, Can i merge all EFPF accounts for availing EFPF pension scheme ?
What is the procedure to linkup my old 4 EPS accounts to the fifth existing PF/EFPF Account ? what are the necessities ?