The government has taken a big decision for millions of employees and pensioners associated with Employees Provident Fund Organization (EPFO) and EPS 95 Pension Scheme. This decision is very important for those who expect financial security after their retirement. The EPS 95 Pension Scheme aims to provide employees a stable income after their service period. Recently, the government has made some changes in this scheme, which can prove beneficial for both employees and pensioners.
In this article, we will discuss in detail about EPS 95 Pension Scheme and new updates related to EPFO. Also, we will also know how this decision will affect employees and pensioners.
What is EPFO and EPS 95 Pension Scheme?
Employees Provident Fund Organization (EPFO) is a major organization of the Government of India, providing services such as Provident Fund, Pension and Insurance for the employees of the organized sector. EPS 95 (Employees’ Pension Scheme 1995 is a scheme run by EPFO, which aims to provide pension facility to employees after retirement.
The objective of EPS 95 Pension Scheme
- Providing financial security to employees after retirement.
- Giving a stable monthly income to employees working in the organized sector.
- Providing financial assistance to employees and their families.
Brief details of EPS 95 Pension Scheme
| Name of the scheme | EPS 95 (Employees Pension Scheme) |
| Launch year | 1995 |
| Operator | Employee Provident Fund Organization (EPFO) |
| Beneficiary | Employees of organized sector |
| Pension amount | Minimum ₹ 1,000 per month |
| Ability | At least 10 years service |
| Contribution | 8.33% of PF contribution by employer |
| New update | Decision on highest pay limit |
Government’s new decision on EPS 95 pension
The government has recently made some major changes in the EPS 95 scheme. The purpose of these changes is to provide more benefits to employees and pensioners. Let’s know about these main changes:
1. Rethinking the highest pay limit
Earlier, the maximum limit of salary under the EPS 95 scheme was ₹ 15,000 per month, on the basis of which pension was calculated. But now the government has considered removing or increasing this limit. This means that if the salary of an employee is more than ₹ 15,000, then he may also be likely to get more pension.
2. Demand to increase minimum pension amount
The minimum pension amount under the EPS 95 scheme was ₹ 1,000 per month. However, many employee organizations did not consider it enough. Therefore, the government has considered increasing the minimum pension amount, so that after retirement, employees can get better economic security.
3. Changes in retirement age
According to some reports, the government is also considering changing the age of retirement. This will give employees a chance to work for a long time and contribute more.
Benefits of EPS 95 Pension Scheme
The scheme provides many advantages to employees and their families:
- Economic Security: A stable monthly income after retirement.
- Benefits to the family: On the death of the employee, his family also gets pension.
- Government guarantee: This scheme is operated by the government, so it has low risk.
- Long -term benefits: Employees serving for at least 10 years can avail this scheme.
How to get EPS 95 pension?
If you want to get pension under the EPS 95 scheme, then you have to adopt the following process:
- Contact your employer and get EPF account information.
- Login on the EPFO portal and check your service period and contribution.
- Fill Form-10 D and submit it to your employer or EPFO office.
- Attach all the necessary documents like Aadhaar card, bank account details etc.
- After the application is approved, you will start getting monthly pension.
Important things related to EPS 95
- This scheme is available only to the employees of the organized sector.
- The employee will have to serve for at least 10 years so that he can take advantage of this scheme.
- A part of the PF contributed by the employer (8.33%) goes to the scheme.
Impact of new updates by the government
Changes made by the government in the EPS 95 scheme may have the following effects:
- Employees who get high salary will now get more pension.
- Employees with small pay will also benefit from increasing the minimum pension amount.
- Due to retirement aging, employees will be able to work for a long time and save more.
Challenges and suggestions
Although the EPS 95 scheme is very beneficial, it also has some challenges:
- The minimum pension amount can still be insufficient for many people.
- Not all employers contribute on time, causing damage to employees.
- Lack of awareness: Many employees do not keep complete information about this scheme.
The government and EPFO should solve these problems and make this scheme more effective.
Disclaimer:
This article is written only for the purpose of giving information. The EPS 95 scheme is a completely real and government recognized scheme. However, it may take some time to implement recent updates. Readers are requested to get information from official sources or EPFO office before any decision. Thus the EPS 95 Pension Scheme proves to be an important initiative for the employees of the organized sector of India. Its new changes can make it even more useful.
