EPFO Update: Pensioners covered under the Employee’s Pension Scheme (EPS) governed by the Employees’ Provident Fund Organisation (EPFO) will receive their pension for the month of October in advance by a day or two keeping in view the Diwali festival on October 31, according to a circular by the retirement fund body.
“Keeping in view the upcoming Diwali festivities and the associated public holidays, it has been decided to release the pension for the month of October 2024 on 29th October 2024. This aims to ensure that pensioners receive their pensions in advance without any delay and can withdraw their pension on 30th October as 31st October is a holiday,” the EPFO circular said.
It further said that it is reiterated that “all field offices shall send the monthly BRS (bank reconciliation statements) to banks in such a way that pension gets credited to pensioners account on or before last working day of the month”.
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Accordingly, all zonal and regional offices are advised to issue necessary instructions to pension disbursing banks under their respective jurisdiction to ensure implementation of the above, the retirement fund body said in its circular.
“It shall be ensured that the BRS is generated by 25th October and sent to the corresponding pension disbursing banks before 29th October 2024. It must be ensured that in any case, pension shall be credited in the pensioners account by 29th October 2024 without fail,” it added.
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What is EPS-95 and how does the pension scheme work?
EPS-95 is a social security scheme, launched in November 1995, for employees working in the private organised sector across the country. Under the scheme, employees and their employers both make contribution. Under the EPFO rules, both employee and employer contribute 12% of the basic salary towards PF contribution. While employee’s entire contribution is paid towards provident fund, the employer’s share gets divided into two parts – 8.33% towards EPS and 3.67% towards PF. This EPS contribution made during the entire service period of an employee ensures a fixed pension after he or she retires at the age of 58.
To become eligible for a pension under the EPFO scheme, the employee needs to contribute to the scheme for at least 10 years. Once 10 years in service completed, one becomes eligible for a pension under the EPFO rules. At present, the minimum pension under the EPFO is Rs 1,000 and the maximum is fixed as Rs 7,500.
