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Out of 17,48,775 applications for higher pensions as of August 7, 2024, EPFO has given higher pensions to only 8,401 subscribers.
Employees earning above the EPFO wage ceiling can opt for a higher pension by contributing a higher percentage of their salary.
N K Premachandran, a Revolutionary Socialist Party MP, on Monday said the government should immediately implement an enhanced pension scheme as approved by the Supreme Court. On November 4, 2022, the Supreme Court ruled in favour of existing employees being able to opt for a higher pension under the Employees’ Pension Scheme (EPS), 1995.
Raising the issue during Zero Hour, the member of Lok Sabha from Kollam said employees are entitled to a higher pension under the EPS 1995.
Out of 17,48,775 applications for higher pensions as of August 7, 2024, EPFO has given higher pensions to only 8,401 subscribers.
He also demanded that a higher pension should be given at the earliest.
The Employee Pension Scheme 1995 (EPS 95), which the Employees’ Provident Fund Organisation introduced on November 19, 1995, is a social security initiative intended to cater to the retirement needs of employees in the organised sector.
Administered by the EPFO, this scheme guarantees pension benefits to eligible employees who reach the age of 58.
He also raised the issue with regard to the calculation of pensions and urged the government to reconsider.
What Is EPS-95?
The Employees’ Pension Scheme (EPS-95), introduced by the Employees’ Provident Fund Organisation (EPFO) on November 19, 1995, is a social security initiative designed for employees in the organised sector. It aims to ensure financial stability after retirement, providing pension benefits to employees who have contributed to the scheme and meet eligibility criteria.
Key Features of EPS-95:
Eligibility: Employees who are part of the EPFO and have completed at least 10 years of service are eligible for the scheme. Pension benefits start at the age of 58.
Contribution: Employees contribute 12% of their basic salary and dearness allowance to EPF. Employers contribute an equivalent amount, of which 8.33% is directed toward EPS.
Benefits: EPS guarantees a fixed monthly pension determined by a formula
Higher Pension Option: Employees earning above the EPFO wage ceiling can opt for a higher pension by contributing a higher percentage of their salary.
(With PTI Inputs)
