EPS 95 in Tamil | Employee pension scheme | Should i choose Higher pension scheme or not ?

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EPF Pension which is technically known as EPS stands for Employees’ Pension Scheme, is a social security scheme provided by the Employees’ Provident Fund Organisation (EPFO). The scheme makes provisions for employees working in the organized sector for a pension after their retirement at the age of 58 years. However, the benefits of the scheme can be availed only if the employee has provided a service for at least 10 years (this does not have to be continuous service). EPS was launched in 1995 and allowed existing and new EPF members to join the scheme.

Both the employer and employee contribute 12% each of the employee’s pay towards EPF. However, the employee’s entire share is contributed towards EPF, 8.33% of the employer’s share goes towards the Employees’ Pension Scheme (EPS) and 3.67% goes towards EPF contribution every month.

In order to be eligible for availing benefits under the Employees’ Pension Scheme (EPS), an individual has to fulfil the following criteria:

He should be a member of EPFO
He should have completed 10 years of service
He has reached the age of 58
He can also withdraw his EPS at a reduced rate from the age of 50 years
He can also defer his pension for two years (up to 60 years of age) after which he will get a pension at an additional rate of 4% for each year