(EPS-95 Pension Benefits) : The Employees’ Pension Scheme (EPS-95) is a crucial financial security scheme for employees working in the organized sector. Introduced by the Employees’ Provident Fund Organisation (EPFO) in 1995, this pension scheme ensures a steady monthly income after retirement. While many employees contribute to this scheme, few fully understand the benefits it offers. This article will explore three major benefits of EPS-95 and explain how you can maximize your pension from ₹1,000 to ₹7,500.
What is EPS-95?
The Employees’ Pension Scheme (EPS-95) is a government-backed pension program that provides financial stability to employees post-retirement. It is designed to support employees who have served in the organized sector and contributed to the Employees’ Provident Fund (EPF). The scheme is funded by the employer’s contribution to EPF, with 8.33% of the employer’s contribution being allocated to EPS.
Key Features of EPS-95:
- Applicable to employees covered under EPF.
- Minimum service period required: 10 years.
- Monthly pension amount: ₹1,000 to ₹7,500 (based on salary and contribution).
- Lifelong pension for the employee; benefits extend to the spouse and dependents after the pensioner’s demise.
Guaranteed Pension After Retirement
One of the primary benefits of EPS-95 is the assurance of a regular pension post-retirement. Employees who have completed at least 10 years of service are eligible for pension benefits once they reach 58 years of age.
Eligibility Criteria for EPS-95 Pension:
- Must be an EPF member.
- Should have contributed to EPS for a minimum of 10 years.
- Pension starts at the age of 58 (early pension option available from 50 years with a reduced amount).
| Service Period | Monthly Pension Amount (Approx.) |
|---|---|
| 10-15 years | ₹1,000 – ₹2,500 |
| 15-20 years | ₹2,500 – ₹4,000 |
| 20-25 years | ₹4,000 – ₹5,500 |
| 25-30 years | ₹5,500 – ₹7,500 |
The pension amount is calculated based on the employee’s salary, number of years of service, and the formula set by EPFO.
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Increased Pension Under Higher Pension Scheme
With the recent EPFO amendments, employees now have the option to opt for a higher pension based on actual salary instead of the pensionable salary cap of ₹15,000. This means employees who contributed to EPF on a higher salary can get significantly increased pensions.
How to Apply for a Higher Pension?
- Submit a joint application with your employer on the EPFO portal.
- Provide proof of higher salary contribution to EPF.
- The application will be verified by EPFO before approval.
| Salary Considered | Pension Without Higher Option | Pension With Higher Option |
|---|---|---|
| ₹15,000 (Capped) | ₹3,000 | ₹3,000 |
| ₹30,000 | ₹4,500 | ₹8,000 |
| ₹50,000 | ₹5,500 | ₹12,000 |
| ₹75,000 | ₹6,000 | ₹18,000 |
Opting for the higher pension scheme ensures a better retirement income but requires a higher contribution adjustment.
Family Pension & Death Benefits
EPS-95 not only provides pension benefits to the employee but also ensures financial security for their family in case of their demise. The scheme includes family pension and orphan pension to support dependents.
Who Can Get the Family Pension?
- Spouse: Receives 50% of the employee’s pension amount for life.
- Children: Eligible for pension benefits up to 25 years of age.
- Dependent Parents: If the employee was unmarried, parents can receive the pension.
| Category | Pension Amount |
|---|---|
| Spouse Pension | 50% of Employee’s Pension |
| Orphan Pension | 75% of Employee’s Pension |
| Parents Pension | ₹1,000 per month |
The family pension ensures financial stability for the dependents after the pensioner’s death.
How is EPS-95 Pension Calculated?
The EPS-95 pension is calculated using a formula that considers the employee’s pensionable salary and years of service:
EPS-95 Pension Formula
Monthly Pension = (Pensionable Salary × Service Years) / 70
Where:
- Pensionable Salary = Average of the last 60 months’ basic salary.
- Service Years = Total number of years the employee has contributed to EPS.
Example Calculation: If an employee has a pensionable salary of ₹20,000 and has worked for 25 years, their monthly pension would be:
(₹20,000 × 25) / 70 = ₹7,142 per month
By contributing under the higher pension option, the pension amount can be significantly increased.
How to Claim EPS-95 Pension?
Applying for the EPS-95 pension is a simple process. Employees can apply online through the EPFO portal or offline at their nearest EPFO office.
Steps to Apply for EPS-95 Pension Online:
- Visit the EPFO Member Portal.
- Log in with your UAN and Password.
- Go to the Pension Claim Section.
- Submit Form 10D with the required documents.
- Track the application status online.
Documents Required:
- Aadhaar Card
- PAN Card
- Bank Passbook
- Service Certificate from the Employer
- Form 10D (Pension Claim Form)
Once the application is processed, the pension amount will be credited to the registered bank account.
The EPS-95 pension scheme is a beneficial retirement plan for employees in the organized sector. With a minimum pension of ₹1,000 and a maximum pension of up to ₹7,500, it provides financial security after retirement. Moreover, by opting for the higher pension scheme, employees can significantly increase their pension benefits. The scheme also ensures family protection through survivor benefits, making it an essential retirement tool.
For those who have served for over 10 years under EPF, claiming EPS-95 benefits is a crucial step toward securing their future. If you haven’t yet explored your pension options, now is the right time to check your eligibility and apply.
The above information is for general knowledge purposes only. Pension amounts and eligibility criteria may change based on EPFO regulations. Employees are advised to check the latest updates from EPFO before making any pension-related decisions.
You r asking to provide the Formula always but no eps pension. I am 80 yrs now.
Pension ഉള്ളവർക്ക് എവിടെ നിന്നാണ് UAN നമ്പർ കിട്ടുക