Pension news has always been important for private employees. Employees’ Pension Scheme (EPS), also known as Employees Pension Scheme, is an important retirement plan for organized sector employees in India. Under this scheme, employees receive pension on the basis of their service period and salary. The scheme is operated by Employees’ Provident Fund Organization (EPFO) and aims to provide financial security to employees after retirement.
It is important for employees working in the private sector to know how many pension they can get after 10 years of service. In this article, we will discuss this scheme in detail and will tell you how pension is calculated under EPS and what are its benefits.
Employees’ Pension Scheme (EPS) overview
The main features of the Employees Pension Scheme (EPS) can be seen in the table below:
| Speciality | Description |
| Purpose of the scheme | Providing financial security to organized sector employees after retirement. |
| Pension calculation | Pension is done on the basis of salary and service period. |
| Minimum pension | It is proposed to increase Rs 1,000 per month (currently), but to Rs 7,500. |
| Maximum pension | Rs 7,500 per month. |
| service period | At least 10 years of service is required. |
| Age of pension | On completing the age of 58 years. |
How is pension calculated?
Pension is calculated using the following formula:
Monthly Pension = Pensionable Salary × Pensionable Service 70
Monthly Pension =
70
Pensionable pay × pensionable service
Where pensionable salary means the average salary of the final 60 months, which is limited to Rs 15,000. Pensionable service means your total service period on which you have contributed to EPS.
Benefits of Employees Pension Scheme
There are many benefits of Employees Pension Scheme that provide financial security to employees:
- Regular income: Regular income guarantee after retirement.
- Benefits to family: Family pension benefits to the family after the death of the employee.
- Disability Pension: If the employee becomes permanently disabled, pension is received regardless of service period.
- Old Age Pension: Facility to get pension on completing 58 years of age.
Type of pension
Various types of pensions are available under EPS:
- Supernance Pension: On completing the age of 58 years.
- Pension at a young age: Less pension between 50 and 58 years.
- Disability Pension: In case of permanent disability.
- Widow Pension: After the death of the employee.
- Child Pension: Children also get widow pension along with widow pension.
Contribution to Employees Pension Scheme
The contribution to EPS is done by both employees and employers:
- Employee’s contribution: The entire 12% contribution of the employee goes to EPF.
- Contribution of employers: 8.33% out of 12% of employers go to EPS and 3.67% EPF.
Necessary documents for pension
The following documents are required to apply for pension:
- Aadhar card
- Passport Size Photo
- Bank passbook
- Form 10D
How to apply for Employees Pension Scheme
To apply for pension, one has to fill Form 10D by visiting EPFO’s website:
- Go to the EPFO website.
- Login in Unified Member e-SEVA Portal.
- Select Form 10D and fill the required information.
- Upload the required documents.
- submit application.
Questions often asked about Employees Pension Scheme
Some common questions related to EPS and their answers:
- Q: What is the minimum pension in EPS?
- A: Currently Rs 1,000 per month, but it is proposed to increase to Rs 7,500.
- Q: What is the maximum pension in EPS?
- A: Rs 7,500 per month.
- Q: What is the service period required for EPS?
- A: At least 10 years of service is necessary.
Benefits and improvement of employee pension scheme
Along with the benefits of EPS, the government is also working to improve the scheme:
- Increase in pension: Proposal to increase minimum pension to Rs 7,500.
- Dearness Allowance (DA): Demand to give DA benefits to pensioners.
- Free medical facility: Demand for free medical facility for pensioners and their families.
Future plans for Employees Pension Scheme
The government is constantly trying to make EPS more attractive:
- Improvement in pension calculation: Consider new formula to improve pension calculation.
- Increase in minimum pension: plan to increase the minimum pension to Rs 7,500.
conclusion
Employees Pension Scheme (EPS) provides a significant financial security for organized sector employees in India. Under this scheme, employees are entitled to pension after 10 years of service. The government is constantly making efforts to improve the scheme, including increasing the minimum pension. The scheme provides a safe future to employees after retirement.
Disclaimer: This article is for general information and the information given in it should not be taken as personal financial advice. Employees Pension Scheme (EPS) is a real scheme available to the employees of the organized sector in India. The terms and conditions of this scheme can change from time to time, so it would be appropriate to visit the official website of EPFO for the latest information.
