Employees' Pension Scheme (EPS) is a retirement scheme managed by the Employees' Provident Fund Organization (EPFO). This scheme is for retired employees who have worked in the organized sector and have retired at the age of 58 years.
EPS was launched in the year 1995. Existing and new EPF members can join this scheme. The special thing is that even if a person works after the age of 58 years, he is still entitled to an EPS pension. That means he can take a pension even while working.
Both the employer or company and the employee contribute equally 12 percent of the employee's salary to the EPF fund. The entire employee's contribution is deposited in the EPF and 8.33% of the employer's or company's share is deposited in the Employee Pension Scheme (EPS) and 3.67% is deposited in the EPF every month. The EPS 95 scheme applies to all employees of companies and other establishments to which the Employees' Provident Fund and Miscellaneous Provisions Act, 1952 applies.
It is necessary to work for ten years-
The benefit of the EPS Pension Scheme is available only to those who are EPFO subscribers. According to the rules of EPFO, any employee who contributes to EPFO has completed 10 years of service, and is above 50 years of age, then he becomes eligible to get a pension. If the total period of employment is less than 10 years, then the amount deposited for pension can be withdrawn anytime in between.
If you are below 50 years of age-
If you have completed 10 years of service and your age is less than 50 years, then you cannot claim a pension. In such a situation, after leaving the job, you will get only the funds deposited in EPF. Pension will be available from the age of 58 years.
You will get less pension before 58 years-
If an employee has worked for 10 years and his age is between 50 years to 58 years, then he is entitled to get a pension, but the amount he will get as a pension will be less. If you claim a pension before 58 years, your pension will be reduced by 4 percent for every year. For example, if an EPFO subscriber wants a monthly pension at the age of 56 years, he will get only 92 percent (100% – 2×4) of the basic pension amount.
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