The Employee Pension Scheme (EPS), managed by the EPFO, is a retirement savings plan for employees in organised sectors. All EPF members are automatically enrolled in EPS. This scheme offers various EPS benefits, including pension payouts after retirement.
What is Employee Pension Scheme?
The Employees’ Pension Scheme (EPS) 1995 was launched by the Employees’ Provident Fund Organisation (EPFO) on 19th November 1995.
It helps employees receive a monthly pension after they retire. Once a member turns 58, they can claim their pension through the EPFO.
Both new and existing EPF members can benefit from EPS 95. Both the employee and employer contribute 12% of the employee's basic salary and dearness allowance (DA) to the scheme.
The entire employee contribution goes to the EPF, while 8.33% of the employer's contribution is allocated to EPS, and the remaining 3.67% goes to the EPF.
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