What will be the amount of pension from EPFO? See Calculation – Variousinfo

EPS-95 Pension Calculation: Employees’ Pension Scheme 1995 (EPS-95) is an important social security scheme launched by the Government of India. The main objective of this scheme is to provide economic security to the workers of the country after retirement. Under EPS-95, the Employees’ Provident Fund Organization (EPFO) manages the pension and pays the pension amount to the beneficiaries regularly.

In this article, we will give detailed information about EPS-95 Pension Scheme. We will discuss how the pension amount is determined, how the calculation is done, and other important aspects related to this scheme. Whether you are an employee or an employer, this information can be very useful to you.

EPS-95 Introduction to Pension Scheme

EPS-95 or Employees’ Pension Scheme 1995 is a government pension scheme that provides economic security to workers in India after retirement. The scheme was launched on 16 November 1995 and is managed by the Employees’ Provident Fund Organization (EPFO).

Key Features of EPS-95

EPS-95 Pension Calculation

The pension amount under EPS-95 is calculated on the basis of a fixed formula. This formula depends on several factors, such as length of service, average monthly salary, and pensionable service.

pension calculation formula

Pension amount = (pensionable service x pensionable salary) / 70

Where:

• Pensionable service = total number of years of service (maximum 35 years)
• Pensionable salary = Average monthly salary of last 12 months (maximum ₹15,000)

calculations with examples

Suppose an employee has served for 30 years and his average monthly salary for the last 12 months is ₹15,000.

Pension amount = (30 x 15,000) / 70 = ₹6,428.57

In this example, the employee will receive a pension of approximately ₹6,429 per month.

EPS-95 Eligibility for Pension

Some of the eligibility criteria to join EPS-95 Pension Scheme are:

• Employee must be 58 years of age or older
• Must have completed at least 10 years of service
• Be registered in EPF scheme

special cases

• Disability Pension: If an employee becomes permanently disabled, he may be eligible for pension without completing the minimum period of service.
• Widow Pension: If an employee dies while in service, his wife is eligible for widow pension.

Recent Changes in EPS-95 Pension

In recent years, several significant changes have been made to the EPS-95 pension scheme:

1. Minimum Pension: The government has set the minimum monthly pension at ₹1,000.
2. Salary Range: The maximum limit of pensionable salary has been increased from ₹6,500 to ₹15,000.
3. Contribution rate: Employer’s contribution has been increased from 8.33% to 12%.

demand for pension increase

EPS-95 Pensioners Association has been demanding increase in pension amount for a long time. Their main demands are:

• Minimum pension ₹7,500 per month
• Benefit of Dearness Allowance (DA)
• Regular updation of pension

Importance of EPS-95 Pension

EPS-95 Pension Scheme is an important social security measure for the workers of India. It has many advantages:

1. Financial Security: Source of regular income after retirement
2. Social Security: Reduces economic dependence in old age
3. Family Security: Provision of pension for widow and children
4. Standard of living: Help in maintaining a respectable standard of living even after retirement

EPS-95 Pension related issues and challenges

Although EPS-95 is an important scheme, there are some issues and challenges associated with it:

1. Low pension amount: Many pensioners believe that the current pension amount is not sufficient.
2. Keeping pace with inflation: The pension amount does not increase according to rising inflation.
3. Lack of awareness: Many employees are not fully aware of the scheme.
4. Administrative issues: Sometimes there are delays or mistakes in pension payments.

Application process for EPS-95 pension

Following is the procedure to apply for EPS-95 pension:

1. Visit EPFO ​​website
2. Click on ‘For Employees’ in ‘Our Services’ section
3. Select ‘Member UAN/Online Service’
4. Enter your UAN and password
5. Select ‘Claim (Form-31, 19 & 10C)’ from ‘Online Services’
6. Fill the form and upload required documents
7. submit application

Required Documents

• Aadhar card
• PAN card
• copy of bank passbook
• retirement certificate

EPS-95 Pension Related Frequently Asked Questions (FAQs)

1. Question: Is there a minimum service period for EPS-95 pension?
   Answer: Yes, minimum service period of 10 years is required.
2. Question: Is income tax applicable on EPS-95 pension?
   Answer: No, EPS-95 pension is exempt from income tax.
3. Question: Does the pension amount ever increase?
   Answer: Yes, the government revises the pension amount from time to time.
4. Question: Are Indians living abroad eligible for EPS-95 pension?
   Answer: Yes, if they satisfy other eligibility criteria.
5. Question: Is EPS-95 pension credited directly to bank account?
   Answer: Yes, the pension amount is deposited directly into the beneficiary’s bank account.

Future of EPS-95 Pension Scheme

There may be several possible changes in the EPS-95 pension scheme in the future:

1. Digitization: The entire process can be made more digital.
2. Increase in pension amount: In view of increasing inflation, the pension amount can be increased.
3. Extension of coverage: Workers in the unorganized sector can also be included in this scheme.
4. Investment Options: Pension funds may be given more options for investment.

conclusion

EPS-95 Pension Scheme is an important social security measure for the workers of India. This scheme provides financial security to retired employees and their families. Although there are some challenges in this scheme, the government is continuously trying to improve it.

Disclaimer

This article is provided for general information purposes only. Although we have attempted to provide accurate and up-to-date information, the rules and provisions of the EPS-95 Pension Scheme may change from time to time. Please visit the official website of EPFO ​​or contact a certified advisor before taking any decision. The author or publisher will not be responsible for any loss or damage caused by the use of this information.