Employees Pension

Scheme 1995
by Vivekanand Gupta ( APFC )
 Objective
Fixed monthly pension based on amount and duration of
contribution,

Minimum pension of Rs1000

Pension upon retirement/ superannuation / Early pension

Disability pension

Widow / children pension upon death of member

Pension to dependent parents

Nominee pension
 Retirement pension

Eligibility- 58 years of age and minimum 10

years of contributory service

Simple formula for calculation, thus

predictable and fixed for life
pension = (PensionableSalary × PensionableService) ÷ 70 + PastServiceBenefits
 Disability pension
For those who are permanently disabled with
regard to their occupation

Unconditional pension i.e. without restrictions

of age or minimum service duration or cause
of disability

Pension for life

 Widow Pension
To spouse upon death of a member, who has completed
10 years of contributory service OR who died during
employment OR a member who has not completed 10
years of service, dies within 3 years of leaving services,

Amount of widow pension is calculated as per formula

for retirement pension

For widows of an existing pensioner, pension is

calculated at 50% of retirement pension
Children/ Orphan Pension
Children pension is in addition to widow pension and
is calculated at 25% of widow pension for each
eligible child

Orphan pension is calculated at 75% of widow

pension

All children below 25 years of age are eligible

Pension is given to eldest 2 eligible children at a time.

Dependent Parents pension

To dependent parents of those deceased

members who are not having spouse or
children.

At same rate as widow pension

To both parents, one at a time, for life.

 Nominee Pension
Members without any family can nominate any
person for nominee pension which is paid for
life

Calculated at same rate as widow pension

If member acquires a family, nominee has to be

one of the family members.
 Early Pension

Option to those members who retire before 58

years of age and want pension

benefits are reduced at 3% for every year’s

shortfall from 58 years
 Other Benefits
Withdrawal benefits if member exits
employment and want to cease membership of
EPS without completing 10 years of service

Guarantee of pension even in case employer

has defaulted from paying contribution

Minimum pension of ₹1000

Membership & Contribution
Every member of EPF before 01/09/2014

Post 01/09/2014, those new members of EPF whose salary

( excluding various allowance ) is lower than 15000/- per month.

Contribution to EPS is by default limited at ceiling of 15000 ( up

from 6500 before 09/2014 ).

Members of erstwhile Family Pension Scheme’71 were automatically

made members of EPS.

Contribution is 8.33% of monthly wages deducted from employer’s

share of contribution to EPF Scheme
Check your membership
Ask your employer if your establishment is covered
under EPF & MP Act 1952 and if he has registered you
a member of EPF and EPS Schemes

Check for regular contribution in your EPF account

by your employer

Approach EPFO if you believe your establishment

should be legally covered under EPF & MP act but has
not been made so till now.
Thank You