Everything You Need To Know About Employee Pension Scheme
Updated On Oct 15, 2021
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All About EPS - Employee Pension Scheme
The Employee's Pension Scheme (EPS) was presented in the year 1995 with the fundamental point of aiding representatives in the coordinated area. All workers who are qualified for the Employees Provident Fund (EPF) plan will likewise be qualified for EPS.
The plan is given by the Employees' Provident Fund Organization (EPFO) and guarantees that workers get an annuity once they achieve the age of 58 years of age. Existing, also as new EPF individuals, can profit from the advantages of the plan. The worker and business each contribute 12% of the representative's essential compensation and Dearness Allowance (DA) towards EPF. While the whole portion of the worker is contributed towards EPF, 8.33% of the business' portion goes towards EPS. The plan goes about as a normal type of revenue after the representative resigns.
Eligibility Criteria To Get Into The EPS
The qualification rules to profit the EPS benefits are referenced underneath:
- You should be an individual from the EPFO.
- You probably accomplished the age of 50 years for early benefits and 58 years for ordinary annuity.
- On the off chance that you concede the annuity for quite a long time (until you arrive at the age of 60 years), you will be qualified to get the benefits at an extra pace of 4% each year.
- You probably finished no less than 10 years of administration.
Fact About EPS
- Since EPS is supported by the Indian Government, the profits are ensured and there are no dangers to put resources into the plan. The sum that will be returned will be fixed and no progressions will be made.
- It is obligatory for workers who procure a fundamental compensation in addition to DA of Rs.15,000 or less to join up with the plan.
- You will actually want to pull out the EPS once you achieve the age of 50 years. In any case, the sum that you get will be at a decreased pace of interest.
- On the off chance that the single man/widow gets remarried, the kids will get the improved annuity sum and they will be ordered as vagrants.
- Representatives who are joined up with the EPF plan will naturally be taken a crack at the EPS plot.
- The base month to month annuity sum that the singular will get is Rs.1,000.
- In the event that the widow/single man is getting the EPS sum, they will keep on getting the sum until his/her passing. From that point onward, the youngsters will get the annuity sum until they achieve the age of 25 years.
- In the event that the youngster is genuinely tested, they will get the annuity sum until his/her demise.
EPS Eligible Assistance Estimation
In the event that a representative has labored for a very long time or more, the assistance period will be considered as 1 year. Nonetheless, if the assistance time frame is under a half year, the functioning term won't be considered. In this manner, if a worker has labored for quite some time and 7 months, the quantity of long stretches of administration will be taken as 11. Nonetheless, if the representative has labored for quite some time and 5 months, the quantity of long periods of administration will be considered as 10.
A singular will actually want to pull out the EPS sum on the off chance that he/she hasn't finished 10 years of administration. Nonetheless, if the worker is right now working and has not completed 10 years of administration, he/she can not pull out EPS sum. Just once the individual stops the organization and prior to joining another organization can the EPS sum be removed.
He/she can pull out the EPS sum on the EPFO entryway by asserting Form 10C. The representative should have a functioning UAN and the KYC subtleties should be connected to the UAN to pull out the EPS sum on the web.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.