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Change in EPFO ​​rules: This change in pension rules will benefit millions of employees

Pratik Mehta

By Pratik Mehta

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Change in EPFO ​​rules Employees’ Pension Scheme: Those who leave EPS scheme within six months will be able to withdraw moneyImage Credit Source: TV9Marathi

Central Government Employees Pension Scheme 1995 (Employees’ Pension Scheme – EPS) Now there will be a big change. Earlier, if the scheme was closed within six months, the members did not get payment. Now the new rule change will also benefit those employees whose scheme is closed after less than six months of contribution. EPS rules have been amended to improve the scheme. Now the withdrawal benefit will depend on how many months the member has served. And how much EPS contribution is to be made on the salary. With this rule, withdrawal will become easier. More than 23 lakh EPS members will benefit from this rule change.

Those whose installments in the scheme have stopped due to leaving the job within six months or for any other reason will also be able to withdraw money. Every year, lakhs of EPS members leave the scheme midway without paying the installments for ten consecutive years required for pension. This scheme is the largest in the country in terms of those who leave the job within six months.

First Old Testament

Till now the withdrawal benefit was calculated on the basis of the period of contributory service over the years and the salary on which the EPS contribution was distributed. Members could withdraw only after completing six months or more of contributory service. Therefore, members who left the scheme before contributing for six months or more did not get any benefit. Due to the old rules, one had to exit the scheme even before contributing for less than six months of service. During the financial year 2023-24, seven lakh PF withdrawal claims were rejected due to less than six months of contributory service. Now those EPS members who have not turned 58 by 14.06.2024 will now get the withdrawal facility.

How to get pension

EPS is a pension scheme administered by EPFO. Under this scheme, contribution has to be made for 10 years. Only after this, employees get pension after retirement. Old and new EPF members join this scheme. Two equal installments of 12 percent of the employee’s salary are deposited by the member employee’s employer and the EPF fund. EPF consists of the employee’s full contribution and the company’s 8.33 percent contribution. Employee 3.64 per cent is deposited every month in the pension scheme (EPS) and EPF. Pension benefits are paid after completing a minimum of 10 years of service and after retirement

Pratik Mehta

Pratik Mehta

I am Pratik Mehta, a passionate business news writer dedicated to covering economic trends, market analysis, and corporate developments.

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