InvestorQ : What is Employees’ Pension Scheme (EPS)?
Sakshi Malhotra made post

What is Employees’ Pension Scheme (EPS)?

Anusha Savla answered.
3 years ago

The Employees’ Pension Scheme (EPS) is a social security scheme provided by the Employees Provident Fund Organisation (EPFO) to build a retirement corpus for an individual.

Under this scheme, the individual contributes 12% of his/her salary towards EPF, and the employer matches this contribution. Some part of the 12% that the employer contributes is then invested with the EPFO towards the individual’s EPS.

According to the Employees’ Pension Scheme, 1995, an employer needs to contribute 8.33% of an individual’s salary into EPS. But usually the employers’ contribution is 8.33% of the maximum pensionable salary, as per the existing rules, which is Rs 15,000.

The EPS makes provisions for employees working in the organized sector for a pension after their retirement at the age of 58 years.