Pension Update: There will be protest against increasing the minimum pension, understand what is EPS-95, how will you get the benefit

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EPS-95: Employees Provident Fund Organization (EPFOA rally is being organized in the capital Delhi today by pensioners for their demands including increasing the minimum pension of Rs 7,500 per month for the employees and pensioners covered under the EPS-95 scheme of Rs. EPS-95 National Struggle Committee (NAC) said that it will hold a rally at Ramlila Maidan on December 7 in support of its demands. 50,000 pensioners from across the country will participate in this rally in support of other demands including increasing the minimum pension to Rs 7,500 monthly. The pensioners are making other demands including increasing the basic pension to Rs 7,500 monthly along with dearness allowance, providing free health facilities to the spouses of the pensioners. At present the minimum pension under Employees Pension Scheme (EPS)-95 is Rs 1,000 per month. According to the statement, after this rally the pensioners will observe a fast unto death at Jantar Mantar from December 8. Committee Chairman Commander Ashok Raut (retired) said that we will hold a rally at Ramlila Maidan on December 7 in support of our demands. This is our final warning. If our demands are not met, we will fast unto death.

Government gives 1.16 percent in pension

Ashok Raut has said that till the Central Government reaches any decision, President Raut, General Secretary Virendra Singh Rajawat and Chief Advisor PN Patil will join the fast. EPS (Employee Pension Scheme) 12 percent of the basic salary of employees coming under age 95 goes to the provident fund. At the same time, out of 12 percent of the employer’s share, 8.33 percent goes to the employee pension scheme. Apart from this, the government also contributes 1.16 percent to the pension fund. The committee says that even after working for thirty-thirty years and continuously contributing to the EPS based pension item, the employees are getting such a small amount as monthly pension, due to which it is difficult for the employees and their families to survive.

What is EPS-95?

The Employees’ Pension Scheme came into effect on 16 November 1995. The scheme applies to all employees of factories and other establishments to which the Miscellaneous Provisions Act, 1952 and the Employees’ Provident Fund apply. This is a type of social security scheme launched by the Employees Provident Fund Organization (EPFO). The objective of the Employee Pension Scheme (EPS) is to provide benefits to employees after their retirement. EPFO manages the administration and helps the employees who reach the age of 58 years to receive pension. EPS benefits are available to both new and existing EPF members. Here, both the employee and the employer contribute 12% of the employee’s salary including basic pay and DA into the scheme. Every month the entire contribution of the employee is deposited in EPF. After this, 8.33% of the employer’s contribution goes to EPS, and the remaining 3.67% goes to EPF.

How to calculate your pension under EPS

The pension amount in PF depends on the pensionable salary and pensionable service of the member. There is a formula for this – Member’s monthly pension = (Pensionable Salary x Pensionable Service)/70. Calculation of Pensionable Salary Pensionable salary is the average monthly salary drawn by the member in the last 12 months before exiting the Employee Pension Scheme. For example- if the salary of the person is ₹ 15,000, and he joins the organization on the 3rd of the month, then the salary for that month will be ₹ 14,000 for 28 days (less ₹ 500 per day for two days). However, the monthly EPS salary considered will be for 30 days, i.e. ₹ 15,000. So, the amount to be credited to the employee’s EPS account will be 8.33% of ₹ 15000 = ₹ 1250. The pensionable service period is calculated by adding up all the services rendered by the member to different employers. Whenever an employee changes jobs, he has to submit the EPS scheme certificate issued to the new employer.

Types of pension under Employee Pension Scheme

There are various types of pensions under the EPS 95 Pension Scheme, such as pensions for widows, children and orphans, which support the family members of the pensioner.

• widow pension

  Under Widow Pension or Old Age Pension, the widow of a member is eligible for pension. The pension amount will be payable till the death of the widow or her remarriage. In case of more than one widow, the pension amount will be payable to the eldest widow.

• child pension

  The surviving children of the family are eligible for child pension in case of death of the member, in addition to the monthly widow pension. Monthly pension will be paid till the child attains the age of 25 years. The amount payable is 25% of the widow pension, and the amount can be paid to a maximum of two children.

• orphan pension

  If the member dies and has no surviving widow, the children of the member will be entitled to receive monthly orphan pension 75% of the value of monthly widow pension. From eldest to youngest, two surviving children will be benefited under orphan pension.

• reduction in pension

  If an EPFO ​​member has completed 10 years of service and has reached the age of 50 years but is less than 58 years, he can withdraw early pension. In this case, the pension amount is deducted at the rate of 4% every year if the age is less than 58 years. If the member decides to withdraw the monthly reduced pension at the age of 54 years, he will get pension at the rate of 84% (100% – 4 x4) of the basic pension amount.

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