Before 2025, a big update revealed regarding EPS 95. Due to this 23 lakhs govt employees will benefit. The central government has made major changes in the Employees’ Pension Scheme. Under this, employees with less than six months of contributory service will also be able to withdraw from the EPS-95 Pension Fund. This will directly benefit about 23 lakh employees working in the private sector. Pension Funds
EPS-95 underwent a major change
Every year, lakhs of employees of the Employees’ Pension Scheme leave the scheme before they have paid the required 10 years of contributory service to the pension. EPFO has given such members the benefit of withdrawal as per the provisions of EPS-95 Pension Fund. Earlier, EPFO subscribers were entitled to withdrawal benefit only after completion of six months or more of contributory service.
Members who left the Employees’ Pension Scheme before six months were not entitled to it. This is the reason that many claims of the members who exited before providing compulsory service were rejected. The report said that during the financial year 2023-24, about seven lakh claims of withdrawal benefit were rejected due to less than six months of contributory service.
This is how it will be calculated in the Employees’ Pension Scheme
The government has made another amendment to ensure that every month of service is taken into account and the withdrawal benefit is given proportionately. This amendment includes those members who have not rendered the required service for the eligibility of the scheme or those members who have attained the age of 58 years.
EPS-95 underwent a major change
The amount that can be withdrawn now will depend on the number of months of service completed by the member and the salary on which the Employees’ Pension Scheme contribution is received.
The EPS-95 Pension Fund was introduced in 1995 for the organised sector employees. Employees eligible for the Employees’ Provident Fund Scheme are also eligible for the Employees’ Pension Scheme.
