In a significant move, the government has amended the Employees’ Pension Scheme (EPS) to ensure that members with less than six months of contributory service are also eligible for withdrawal benefits. This amendment is set to benefit over seven lakh EPS members annually who exit the scheme with less than six months of service.
Previously, members who had contributed to the EPS for less than six months were not eligible for any withdrawal benefits. However, with the recent amendment, the Central Government has modified Table D of the EPS, ensuring that every completed month of service is taken into account to provide proportionate withdrawal benefits to the members.
Key Details of the Amendment:
- Proportionate Withdrawal Benefit: The withdrawal benefit will now be calculated based on the number of completed months of service rendered by the member and the wages on which EPS contributions were received.
- Rationalized Payment: The Labour Ministry emphasized that this measure rationalizes the payment of withdrawal benefits, making it fairer for members with shorter service periods.
- Impact: More than 30 lakh withdrawal benefit claims were settled in the fiscal year 2023-24, showcasing the extensive reach and impact of this scheme.
This amendment is part of the government’s broader efforts to provide equitable benefits to all EPS members, regardless of the duration of their contributory service. By ensuring that even those with less than six months of service receive a withdrawal benefit, the government aims to enhance the social security net for workers across the country.
