This being a major relief to private-sector working masses, the government came out with the new EPS update guaranteeing a minimum monthly pension of ₹8,500 to eligible retirees. Thereby, thousands of disgruntled employees from all over India, reticent tilts awaiting an increase in post-retirement earnings, stand to benefit from this.
Understanding EPS
The EPS, or Employees’ Pension Scheme, called and dispensed by the EPFO, offers pension benefits to employees working in the organized sector. Contributions under EPS are paid by the employer, which forms part of the total contribution toward an employee’s EPF account. ACPF is a portion of the basic salary and dearness allowance (DA) of an employee, and thus, the contribution is deducted on this full amount. Upon retirement, eligible employees receive monthly pension payments calculated on the basis of number of years of service and average salary of the EPS member.
New Enhancement Of Pension: ₹8,500 Per Month
The government, under this new update, has fixed the minimum monthly pension at ₹8,500 for all EPS beneficiaries. A commendable step taken in moving up the standard pension amounts which, as per reports, were quite miserly and stood below ₹1,000 to even ₹2,000 in many cases. This all-important uplift given to a pension looks to safeguard both the social and financial security of retired employees of the private sector.
Who Is Eligible?
To be eligible for a pension of ₹8,500 per month under EPS, usual conditions include:
- An employee should have contributed the EPS with a minimum of 10 years of service.
- The employee should have attained the age of retirement, i.e., 58 years.
- Pension is to be calculated on average salary for the 60 months preceding the date of retirement.
- Only private-sector workers who are registered under the EPF and EPS get the pension.
Further clarifications on the transitional arrangements, cut-off dates, and documentation for claiming enhanced pension may be issued by EPFO.
How Fo Claim The Pension?
Eligible employees had to apply for the enhanced pension either through the official EPFO portal or by making a visit to the nearest EPFO office. Key documentation includes:
- UAN (Universal Account Number)
- Aadhaar Card
- Bank account details
- Employment and salary records
Following the verification process, the pension would be directly credited to the beneficiary’s bank account.
Also Read:EPS-95 Pension Update: RS 7,500 Monthly + DA Approved By Supreme Court