EPS Pension Scheme Rules 2023: Employees will get bonus, EPS pension will increase, see EPFO’s new order.
EPS Pension Scheme Rules 2023: Usually the employees coming under the Employee Pension Scheme are known! That they are eligible for pension from the age of retirement. However, many people do not know this! That if they have been covered under the Employees’ Provident Fund Organization for more than 20 years!
So they deserve the bonus too! It is given in the form of additional service years specified under the EPS (Employee Pension Scheme) pension scheme. Once this bonus is added to your years of service! So it increases that EPFO (Employees’ Provident Fund Organisation) pension amount! What you deserve to get!
EPS Pension Scheme Rules 2023
Experts say, ‘If an employee has served 20 years or more under the EPFO (Employees’ Provident Fund Organisation) scheme, then two years are added to the service period! This service period can be with one employer or with different employers. Provided they are covered under the EPF scheme! Note that the maximum service period under EPS (Employee Pension Scheme) is 35 years!
How Bonus Year Contributes to Your EPS Pension Amount
EPS (Employee Pension Scheme) eligible employee for bonus will get more pension amount if bonus service years are added to his service. This is done by calculating under EPFO (Employees’ Provident Fund Organisation) pensionable salary X pensionable service years/70.
Employee Pension Scheme
Let’s take an example! Where an employee has worked for 21 years with multiple employers while continuously contributing to EPFO (Employees’ Provident Fund Organisation) and EPS accounts! As per the EPF law, the maximum limit of pensionable salary is Rs 15,000. Eligible pension amount Rs. 4,500 – (15,000X21)/70. Now adding bonus service years (2 years) to the pensionable service years, the amount of pension will be Rs 4,929 – (15,000X23) / 70 rupees! Due to the addition of bonus service years, the EPS (Employee Pension Scheme) pension amount has increased by Rs 429.
