Employees provident fund schemes - Employees Provident Fund & Miscellaneous Provision Act(1952), Ind Video Lecture | Industrial Laws - B Com

welcome to yet no investment Academy
today we are going to talk about
employee pension scheme also known as
EBS EPS is a pension scheme for the
employees of the organized sector
pension is provided in case of
retirement in case of disablement and
pension is also provided to the family
members or nominee in case of
unfortunate death of the EPS member or
the EPS pensioner let us talk about the
contributions now if you are a part of a
PF that is employee Provident Fund 12%
of your basic + da is your contribution
and as you already know even the
employer matches your contribution now
out of this employer contribution 8.33%
goes to the EPS account so your your
employer is contributing and not you
even the government contributes one
point one six percent of your basic plus
da to your ApS account and both these
contributions that is the employer and
the government contribution is limited
to a maximum of fifteen thousand rupees
in basic plus da that is not more than
twelve hundred and fifty rupees is
contributed by your employer and not
more than 180 rupees is contributed by
the government to your EPS account each
month
wherever the basic plus da is more than
fifteen thousand rupees the government
no longer contributes and you have to
fund this one point one six percent of
contributions from your own share
now one of the important things to note
here is that your EPS contributions do
not earn any interest like your EPF
contributions how do you become a member
of EPS once you join an organisation
providing EPF that is employee Provident
Fund to its employees you become a
member of the employee pension scheme as
well as employee deposit linked
Insurance Scheme you can opt out of EPS
only at the start of your employment but
once started you cannot opt out you have
to be an EPS member if your basic Plus
da is less than or equal to 15,000
rupees
once you become an EPS member you remain
a member till the age of 58 years after
that you start getting EPA's pension and
become a pensioner and remain no longer
a member of EPF employees joining after
1st of September 2014 and earning more
than 15,000 rupees as the basic plus da
cannot be a part of eps early discounted
pension can be received if you
voluntarily retire after the age of 50
years and before the age of 58 years
pension reduces by 4% for each year of
early retirement you can also differ
your pension till 60 years of age for
every deferred your pension increases by
4% let us look at the scenarios when you
are entitled for a pension through EPS
first is termed a superannuation you
receives this pension after the age of
58 years and you should have been in
service for at least 10 years to receive
superannuation and when you turn 58
years old and start getting this pension
you may or may not be in service the
next type of pension is early pension
which we've already referred to you can
get this if you wall until you retire
between the age of 50 to 58 years and to
get this you should have been in service
for at least 10 years and when you
receive early pension you should not be
in service of any sort pension to the
family members is given in case of death
of an EPS member while he was in service
and you're the employment should have
been for at least one month it is also
given to the family members in case of
death of an EPS member while he was not
in service but was less than 58 years
old and had been in service for at least
10 years it is also given to the family
members in case of death of an EPS
pensioner in the case where the deceased
EPS member does not have a family the
nominee receives the pension and in the
case when nomination has not been
submitted but the deceased has dependent
parents the father receives the pension
first and then after the
death of the Father mother receives
mention please note family members in
case of EPs includes spouse and children
alone friends in the current video we
have seen what is EPS we have also seen
how contributions are made towards EPS
we have also seen how you become a
member of EPS and you have seen who in
what all scenarios are entitled for a
pension and when in part two of eps we
will see in what all scenarios you can
withdraw your pension benefit and we
will also see how to calculate pension
friends thanks for watching this video
watch this space for more such topics
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