Employees’ Pension Scheme Rs 2,000 crore released by Union government [ Current Affairs ]
About Employees’ Pension Scheme: This scheme started in 1995. In this scheme, Employees who are members of EPF (Employee Provident Fund) will automatically become the members of EPS (Employee Pension Scheme).
- Along with the employer contribution of 8.33 % of the salary, Central Government also contributes 1.16 % of employees’ monthly salary.
- Here the meaning of salary means Basic + DA. The rulebook still sticks to the old salary limit of Rs. 6, 500 limits for an employer and central government contribution.
- Employee will not get any interest on EPS contribution.
- For calculation purposes, if the service is more than or equal to 6 months, then it will be rounded to next year.
- If it is less than 6 months, then such fraction of service period is not considered for calculation.
- Retiree receives a pension for life long and upon death this trend will go to spouse and two children below 25 years of age.
- Employees are eligible for EPS only if they complete 10 Yrs. of service or attain the age of 58 or 50 Yrs. of age.
- Employee will not be eligible to receive more than one pension from EPS.
Ab out the steps taken by government:
- Government has released 2, 000 crore rupees to Employees’ Pension Scheme (EPS) as its contribution for the year 2015 - 16.
- This contribution is in addition to the 250 crore rupees contributed by the government as grant - in - aid in the EPS in order to provide minimum pension of 1, 000 rupees to retirees under the scheme.
- The contribution of government has been calculated at a rate of 1.16 per cent of the monthly wages of the members contributing to the scheme.
- In September 2015, Government had assured EPS retirees a guaranteed minimum pension of Rs. 1, 000 per month.
- Approx. 28 lakh retirees including five lakh widows will get benefit from this scheme. (There are total 44 lakh retirees).
- Published on: September 15, 2015