Employee Pension Scheme [Minimum EPS Pension Amount to be Hiked]
The central government is planning to increase the pension amount that will be of immense help for 4 million employees. The authority has planned to double minimum limit of EPS pension amount. It has been increased to rupees 2000 on a monthly basis. The workers of Employees Provident Fund Organization will be able to avail the benefits offered under this scheme.
|Increased money under pension scheme is||rupees 2,000 per month|
|Beneficiaries of the scheme||Workers included in Employees Provident Fund Organization|
|Total amount spent by central government is||rupees 12,000 crores|
|Aim of the scheme||To increase the minimum EPS pension amount given to employees|
What are the key features of the pension scheme?
- The workers already included in Employees Provident Fund Organization will be able to avail the benefits of this pension scheme
- Finance ministry might prohibit withdrawal of pension amount from provident fund account unless the employee is retired.
- At present, the central government is giving out rupees 9,000 crores on pensions of government employees.
- After the approval of the above-said scheme, the amount given by the government will rise to rupees 12,000 crores.
Eligibility criteria of the scheme
- Retired employee – The employees will not be able to withdraw the pension amount until they reach the age of retirement.
- EPF scheme employee – Employees who are part of employee provident fund will be able to apply for the benefits of the hiked pension scheme.
No other eligibility criteria has been declared by the central government pertaining to this scheme. As soon as the details are updated in the online portal of the scheme, the employees will be the first one to know about it.
What are the documents required to be part of this scheme?
- Age limit – Employees will be able to avail the pension part included in the provident fund account only after reaching the age of retirement.
- Identity proof – When trying to avail the pension scheme, the employees have to introduce their identity proof. It can be either voter ID card, Aadhaar card or ration card.
- Salary details – The pension amount will be decided on the salary of the employee. Therefore, it is important to introduce their salary details at the time of submitting the application form pertaining to the above-said scheme.
- Bank account details –The employee has to provide the bank details as the increased pension amount will be credited directly to the linked bank account.
Application procedure of pension scheme
The central government is yet to sanction the scheme and detail about its application process. As soon as the information comes up in the official website of the scheme, the eligible employees will be able to know about it. The higher authority is receiving pressure to increase the pension amount between rupees 3,000 to 7,500.
However, the central government in assessing the employee pension scheme and considering the possible hike in the monthly pension amount. Every month, 12% of the employee’s salary is credited in the EPF account. This contribution is divided into 3.67% in EPF and 8.33% in EPS. In addition to this, employees have to pay administrative charges of rupees 1250 along with 0.5% of EDLI charges every month.