EPFO Board Meeting: Minimum Amount to be received under the Employee Pension Scheme

EPFO board meeting is to be held today. In this, a decision can be taken on the minimum pension to be received under the Employee Pension Scheme (EPS). There has been a demand to increase the minimum pension for a long time. At present, the EPFO ​​has fixed the minimum pension of Rs 1000.

The Standing Committee had recommended in March

In March, the Standing Committee of Parliament had recommended raising the minimum pension amount from Rs 1000 to Rs 3000. However, the pensioners demand that the pension amount is very less, it should be increased to at least Rs.9000.

There is a demand of EPFO ​​board members and Bharatiya Mazdoor Sangh that pension should be fixed according to the last salary of the employee just before retirement. Right now the average salary of the last 5 years is seen. However, the Labor Ministry has expressed its inability to do so.

What is EPS 95 Pension Scheme?

There is Employees Pension Scheme-1995 for all the subscribers on getting Provident Fund under EPFO. In this, people working under the organized sector get a pension after the age of 58 years. For this, it is mandatory for the employee to have a job of at least 10 years. When an employee becomes a member of EPF i.e. Employee Provident Fund, he also becomes a member of EPS. The employee contributes 12% of his salary to the EPF and the same amount is also given by the employer. But, a part of the employer's contribution is deposited in the EPS.

The contribution to the EPS account is 8.33% of the salary. However, at present, the pensionable salary is considered to be a maximum of Rs 15 thousand only. With this, this pension share is a maximum of 1250 per month. Under this, a minimum pension of 1000 and a maximum of Rs 7,500 is given. Widow pension, children's pension facility is available in the scheme. If the employee dies before the age of 58 while in service, his wife and children get the pension.

Conditions for availing EPS

• The employee should be a member of EPF.
• The tenure of the job should be at least 10 years.
• The employee should have completed the age of 58 years. One can opt for pension on attaining the age of 50 years and also before the age of 58 years. But, in this case, you will get a reduced pension. For this, Form 10D has to be filled.
• The employee can contribute to the EPS even after the completion of 58 years and can start pension either from the age of 58 or from the age of 60.
• On commencement of pension from the age of 60, enhanced pension is available at the rate of 4% per annum for the deferred 2 years.
• In the event of the death of the employee, his family is entitled to the pension.
• If an employee's service is less than 10 years, then they get the option to withdraw the pension amount at the age of 58 years.

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