The Central Government had launched Employees’ Pension Scheme, 1995 in exercise of the powers conferred by Section 6A of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952).  The EPS’95 scheme applies to all the employees of factories and other establishments to which the Employees Provident Funds and Miscellaneous Provisions Act, 1952 applies. Employee Pension Scheme (EPS) came into force on 16th November 1995.

The government has, for the first time, started providing a minimum pension of Rs 1,000 per month to the pensioners under EPS, 1995 from September 1, 2014 by providing additional budgetary support keeping the widespread demands although there is no provision in the Scheme for budgetary support

Eligibility Criteria:

  • He should be a member of EPFO.
  • For availing the pension benefits under the EPS 95 Pension scheme the employee must serve a minimum of 10 years in service.
  • The age of retirement is 58 years.
  • Member can also withdraw his/her EPS at a reduced rate from the age of 50 years
  • If an employee has completed less than 10 years of service. but more than 6 months’ service, then he/she can withdraw the EPS amount on being unemployed for more than two months
  • A member’s family also becomes eligible for Pension benefits in case of death of the member while in service.

Benefits:

1. EPFO has certain benefits, which are payable to orphans as per the EPS 95 scheme as mentioned below in brief.

  • Pension amount is 75 per cent of monthly widow pension, with minimum of Rs 750 per month, each for two orphans at a time
  • The pension will be paid till 25 years of age
  • The pension will be paid lifelong if the person is suffering from any disability

2. Benefit provided in case of death of an employee, who was a member of the scheme at the time of death – Benefit amount 20 times of the wages. Maximum benefit of 6 lakh.

3. Pension to nominee for entire life paid on death of member, in case there is no family, as defined under EPS’ 95.

EPS Scheme 1995, Eligibility & Its Benefits

4. In case a member is not able to remain in service for 10 years before attaining the age of 58 years, he can withdraw the complete sum at the age of 58 years. It is worth mentioning here that he will not get the monthly pension benefits after retirement.

5. Lifelong pension equal to monthly widow pension paid to dependent father or mother on death of member, provided there is no family or nominee of member.

Note: In case of any details and query, the EPFO members can login to the official website of EPFO at www.epfindia.gov.in 

Latest News: The RSS-affiliate trade union Bhartiya Mazdoor Sangh has urged the government to increase the minimum pension under the Employees Pension Scheme, 1995 to Rs 5,000 a month and link the Ayushman Bharat medical schemes to all EPS-95 pensioners while exempting senior citizens from income tax. The current minimum monthly pension under the EPS 95 is Rs 1,000.

“Ayushman Bharat medical scheme should be extended all EPS 95 pensioners and any hike in minimum pension in EPS 95 should be universal hike to all 65 lakh pensioners,” it said.

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Disclaimer:  Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.

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3 Comments

  1. NARASIMHARAO says:

    Pl clarify under EPS 95 scheme “whether the option of commutation of pension is allowed or not? If so what are the provisions of the same.

  2. JANARDHAN DASARI says:

    I am in need to verify the calculations of eps-95 since January 2001 & extensions from time to time as on today. The calculations 1). Previous/past Service 2). Pensionable with the tables of the Factors

  3. Ramesh Reddy says:

    My query regarding EPS if withdrawn completely in my service of 14 years and settled in abroad and after coming back india at age of 59 years will i be eligible for pension if my last drawn salary in india is 54000 with basic pay as 19000

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