EPS 95 Pension Scheme is an important social security initiative launched by the Government of India, which aims to provide financial stability to the employees of the organized sector after retirement. The scheme is managed by Employees’ Provident Fund Organization (EPFO) and provides employees a regular pension based on their service. Under the EPS 95 scheme, employees get a certain monthly pension based on their salary and years of service.
The demand to increase the minimum pension under the EPS 95 scheme has been going on for a long time. Recently, the government has proposed to increase the minimum pension from ₹ 1,000 to ₹ 7,500, including Dearness Allowance (DA). This decision will be a major relief for pensioners, who are not satisfied with their pension due to rising inflation and medical expenses.
EPS 95 Pension Scheme overview
| Speciality | Description |
| Name of the scheme | EPS 95 Pension Scheme |
| management | Employees’ Provident Fund Organization (EPFO) |
| Minimum pension (proposed) | ₹ 7,500 per month |
| Current minimum pension | ₹ 1,000 per month |
| Pension calculation | Pensionable Salary × Pensionable Service / 70 |
| Beneficiary | EPS-95 pensioner |
| salary range | Increased from ₹ 15,000 to ₹ 21,000 proposed |
The main features of EPS 95 Pension Scheme
Following are some of the major features of EPS 95 Pension Scheme:
- Regular pension: This scheme provides a regular monthly pension to employees after retirement.
- Family Pension: If the employee dies, their family also gets the benefit of pension.
- Minimum Pension Guarantee: Currently the minimum pension is ₹ 1,000, which is proposed to increase to ₹ 7,500.
- Early pension: Employees can avail pension benefits from the age of 50, although the pension amount is deducted.
- Life -long pension: This pension runs till the lifetime of the employee and the family gets after his death.
Eligibility Criteria for EPS 95 Pension Scheme
To avail the EPS 95 pension scheme, employees have to meet the following eligibility criteria:
- EPFO Membership: Employee should be a member of EPF.
- Minimum service period: Service of at least 10 years is required.
- Age Criteria: Pension is available from the age of 58, but employees can opt for initial pension from 50 years.
- Regular contribution: Employees should contribute regularly to EPS during their service period.
Benefits of EPS 95 Pension Scheme
EPS 95 pension scheme provides the following benefits to employees:
- Financial security: a regular income guarantee after retirement.
- Family coverage: Financial assistance to the family after the employee’s death.
- Tax Benefits: The contribution to the EPS 95 scheme is tax free under Section 80C of the Income Tax Act.
- Social security: Reducing economic stability and financial stress in old age.
Contribution to EPS 95 Pension Scheme
EPS 95 Pension Scheme is contributed in the following way:
- Contribution of employer: 12% contribution by employer, of which 8.33% goes to EPS.
- Employee’s contribution: Employee’s full contribution goes to EPF, not direct contribution to EPS.
EPS 95 Pension Count
EPS 95 pension is calculated using the following formula:
Monthly Pension = Pensionable Salary × Pensionable Service 70
Monthly Pension =
70
Pensionable pay × pensionable service
- Pensionable Salary: Average monthly salary of final 60 months of service.
- Pensionable Services: Total Service Year Provided by Employees.
For example, if your pensionable salary is ₹ 15,000 and your service is 25 years, then:
Monthly Pension = 15,000 × 2570 = ₹ 5,357.14
Monthly Pension =
70
15,000 × 25
= ₹ 5,357.14
How to claim EPS 95 pension
Follow the following stages to claim EPS 95 pension:
- Fill Form 10D: Fill Form 10D to apply for pension.
- Attach the required documents: Attach documents like age proof, service certificate, and bank account details.
- Submit EPFO: submit the application to the respective EPFO office or through the online portal.
- Track the status of the application: Check your application status using the EPFO portal.
For family pension, Form 10C should be deposited by nominated person or family member.
Proposed change in EPS 95 Pension Scheme
Recently, the government has proposed some significant changes in the EPS 95 pension scheme, one of which is to increase the minimum pension from ₹ 1,000 to ₹ 7,500. This change will be a major relief for pensioners, who are not currently satisfied with their pension due to rising inflation and medical expenses.
Apart from this, the government has also proposed to increase the salary limit from ₹ 15,000 to ₹ 21,000, so that more employees will be able to avail this scheme. This change will be beneficial not only for pensioners but also for new employees.
Beneficiaries of EPS 95 Pension Scheme
The beneficiaries of the EPS 95 Pension Scheme are mainly employees who work in the organized sector and are members of the EPF. This scheme is particularly beneficial for employees who regularly contribute to the EPF during their service.
Under the EPS 95 Pension Scheme, employees get a fixed pension based on their years of service and salary, which provides financial security after their retirement. The scheme provides a safety trap not only for employees but also for their family, as even after the death of the employee, the family gets the benefit of pension.
Importance of EPS 95 Pension Scheme
The EPS 95 Pension Scheme plays an important role in the field of social security in India. The scheme not only provides financial security to employees after retirement, but also provides economic stability to their family. Through this scheme, the government has ensured that the employees of the organized sector should be free from financial stress in their old age and can lead a respectable life.
The importance of EPS 95 pension scheme is as follows:
- Financial security: The scheme guarantees a regular income after retirement to employees, allowing them to easily meet their daily expenses.
- Family security: Even after the death of the employee, his family gets the benefit of pension, which gives the family economic stability.
- Social Security: This scheme provides economic stability to employees in old age, so that they can live their lives with respect.
Challenges in EPS 95 Pension Scheme
The EPS 95 pension scheme also has some challenges that need to be noted. One of these major challenge is the demand to increase the minimum pension amount, which has been going on for a long time. Pensioners and labor unions have been demanding to increase the minimum pension from ₹ 1,000 to ₹ 7,500 for years, which has become necessary due to rising inflation and medical expenses.
Another challenge is that many pensioners are still receiving less than ₹ 1,000 pension, which is not enough to meet their daily expenses. To solve this problem, the government will have to pay attention to other social security measures along with increasing the minimum pension.
Future of EPS 95 Pension Scheme
The future of EPS 95 pension scheme is very promising, as the government is constantly making efforts to improve the scheme. Recently, it is clear from the proposal to increase the minimum pension and increase the salary limit that the government understands the problems of pensioners and is looking for solutions for them.
EPS 95 Pension Scheme may see the following changes in the future:
- Increase in minimum pension: Pensioners will get financial security by raising the minimum pension ₹ 7,500.
- Increase in salary limit: Employees will be able to avail this scheme by more than ₹ 21,000 to the salary limit.
- Increase in social security: Other social security measures can also be noted by the government, such as free medical facilities.
Disclaimer: This article has been prepared for the purpose of general information and the information given in it should not be considered as personal financial advice. For specific information about EPS 95 Pension Scheme, please contact the official EPFO website or concerned authorities. We are not responsible for the accuracy and update of the information given in this article.
