Business Standard

Don't bank just on EPS as its pension payouts are paltry, say analysts

At present, it is mandatory for employees who earn a basic salary plus dearness allowance (DA) of up to Rs 15,000 to enrol in EPS

pensions, funds, retirement, investments, investors, savings
Premium

You can apply for complete withdrawal from EPF and EPS if you lose your job and are unemployed for two months or more, provided your number of years of service (in EPS) is less than 10.

Bindisha Sarang
The Employees’ Provident Fund Organisation (EPFO) is planning to bring out a new pension product for organised sector workers who get basic wages of more than Rs 15,000 per month and are not mandatorily covered under its Employees’ Pension Scheme 1995 (EPS-95), according to media reports.

At present, it is mandatory for employees who earn a basic salary plus dearness allowance (DA) of up to Rs 15,000 to enrol in EPS. The key drawback of the current scheme, and the reason a new scheme is being formulated, is that the pension is paltry. 

Current scheme

The employee and the employer each contribute 12

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Feb 22 2022 | 6:10 AM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com