EPFO: The central government made an important change in the EPS scheme. Now those with less than six months of service will be able to withdraw from the pension fund. 23 lakh employees will benefit from this decision. Earlier 7 lakh claims were rejected.
The central government has made a big change in the Employees’ Pension Scheme (EPS- 1995). Under this, employees with less than six months of contributory service will also be able to withdraw from the Pension Fund (EPS). This will directly benefit about 23 lakh employees working in the private sector.
Earlier this was the rule
EPFO has given the benefit of withdrawal to such members as per the provisions of the scheme. Earlier, EPFO members were entitled to withdrawal benefits only after completing contributory service for six months or more. Every year, lakhs of employee members of Pension Scheme-95 leave the scheme before giving the required 10 years of contributory service for pension.
Members leaving the scheme before six months were not entitled to it. This was the reason why many claims of members who exited before providing the mandatory service were rejected. The report said that during the financial year 2023-24, about seven lakh claims of withdrawal benefits were rejected due to less than six months of contributory service.
This is how the calculation will be done
The government has made another amendment to ensure that every month of service is taken into account and withdrawal benefits are given in proportion to that. This amendment covers those members who have not given the required service for eligibility for the scheme or those members who have attained the age of 58 years. The Employees’ Pension Scheme (EPS) was introduced in 1995 for organized sector employees.
The amount that can be withdrawn will depend on the number of months of service completed by the member and what is the salary on which EPS contribution has been received.
Both employers and employees contribute to this fund, which is operated by the Employees’ Provident Fund Organization (EPFO) under the Ministry of Labor and Employment. A minimum of 10 years of contributory service is required to start pension under this scheme. Employees eligible for the Employees’ Provident Fund Scheme are also eligible for the Pension Scheme.
Group insurance scheme for government employees stopped
The Employees Provident Fund Organization (EPFO) has decided to stop the deduction under the Group Insurance Scheme (GIS) for government employees who joined the service after 1 September 2013 with immediate effect. Recently, EPFO has issued a circular in this regard. It has been said that this decision will affect only those government employees who have joined the service after 1 September 2013.
The deduction made from their salary will be refunded to them. This decision will give some increase in the salary of the employees. This scheme was started on 1 January 1982.
