EPS Update: The government listened to the employees, changed the rules for withdrawing money from EPS..
The government has changed the withdrawal rules of the Employees Pension Scheme, 1995. After this amendment, members of the Employees Pension Scheme with less than 6 months of contributory service will also be able to withdraw money from the EPS account. This amendment will benefit more than 7 lakh members of the Employees Pension Scheme every year who leave the scheme after less than 6 months of contributory service.
According to a press release from the Press Information Bureau (PIB), the central government has also amended Table D. From now on, the withdrawal benefit will depend on how many months the member has served and how much EPS contribution has been made on the salary. This will help rationalize the withdrawal benefit of the members. More than 23 lakh EPS members will benefit from this amendment. The Ministry of Labor said that there are lakhs of such EPS 95 scheme members in the country who leave the scheme midway despite the rule of contributing to the scheme continuously for 10 years to get a pension.
Six months of contribution was necessary to withdraw money.
According to the rules till now, the calculation of withdrawal benefit is decided based on the year completed in service and the salary on which contribution has been made for EPS. Only members who contributed for 6 months or more could avail of this withdrawal benefit. In such a situation, members who leave the scheme after contributing for less than six months do not get any withdrawal benefit. Due to this, the claim applications of many people were rejected.
7 lakh claims rejected
According to the Ministry of Labor, due to the rule of contribution for more than six months, 7 lakh withdrawal claim applications were rejected in 2023-24. These were such applications in which contribution was made to the EPS 95 scheme for less than 6 months. But after this decision of the government, all those EPS members who have not attained the age of 58 years by June 14, 2024, will also be entitled to the benefit of withdrawal of money.
Also amended in Table D
The central government has also amended Table D. From now on, the withdrawal benefit will depend on how many months the member has served and how much EPS contribution has been made to the salary. This will help in rationalizing the withdrawal benefit of the members. This amendment will benefit more than 23 lakh EPS members. This will enable proper withdrawal benefits to be availed. For example, if a member contributes to EPS while serving for 2 years and 5 months on a monthly salary of Rs 15,000, then according to the earlier rule, he would get a withdrawal benefit of Rs 29,850, but after the amendment in the rules, a withdrawal benefit of Rs 36,000 will be available.
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