Employees' Pension Scheme: Government Amends Employees' Pension Scheme to Benefit Over 30 Lakh Members

Employees' Pension Scheme: The Employees' Pension Scheme (EPS) 1995 has been amended to provide withdrawal benefits to members with less than six months of service, a move set to benefit over 7 lakh EPS members annually. The government announced the modification, which aims to enhance the pension scheme's inclusivity and fairness.

Key Amendment for Short-Term Employees

Previously, EPS members needed a minimum service period to be eligible for withdrawal benefits. With the new amendment, even those with less than six months of service can now withdraw their pension contributions. This change is expected to benefit more than 7 lakh members each year, providing financial support to employees who may have had shorter tenures.

Modification of Table D for Fair Payment

In addition to the withdrawal benefit amendment, the government has also modified Table D of the EPS. This modification ensures fairer payment of withdrawal benefits, enhancing the overall financial security of the members. More than 23 lakh EPS members are expected to benefit from this change, which aims to make the pension scheme more equitable.

Impact on EPS Members

The amendments are a significant step towards improving the social security net for employees in India. By extending benefits to those with shorter service durations and ensuring fair payment calculations, the government is addressing key gaps in the existing pension framework. The changes reflect a commitment to enhancing the welfare of workers and providing them with better financial stability.

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