The government amended EPS 1995, those who serve for less than 6 months will also get withdrawal benefits.

Employees Pension Scheme Update: Now those EPS members who contribute to EPS for a tenure of less than six months will also get the benefit of withdrawal benefit.

Employees Pension Scheme: EPS members will be able to withdraw money even after contributing for less than six months to the Employees Pension Scheme. The Government of India has amended the Employee Pension Scheme Employees Pension Scheme (EPS) 1995, after which members will be able to avail the withdrawal benefit even after contributing for less than six months. Due to the amendment in EPS 1995, 7 lakh EPS members will benefit who leave the scheme midway after contributing for a period less than this despite the rule of contributing to EPS for at least six months.

The Ministry of Labor said that there are lakhs of EPS 95 scheme members in the country who leave the scheme midway despite the rule of contributing to the scheme continuously for 10 years to get a pension. Such members are given the benefit of withdrawing money under the rules of the scheme. In the financial year 2023-24, 30 lakh withdrawal benefit claims have been settled.

Till now, the calculation of withdrawal benefit is decided on the basis of the year completed in service and the salary on which contribution has been made for EPS. Only members who contributed for 6 months or more could avail of this withdrawal benefit. In such a situation, members who leave the scheme after contributing for less than six months do not get any withdrawal benefit. Due to this, the claim applications of many people were rejected.

According to the Ministry of Labor, 7 lakh withdrawal claim applications were rejected in 2023-24 in which contribution was made to the EPS 95 scheme for less than 6 months. But after this decision of the government, all those EPS members who have not attained the age of 58 years by June 14, 2024, will also be entitled to the benefit of withdrawal.

The central government has also revised Table D. From now on, the withdrawal benefit will depend on how many months the member has served and how much EPS contribution has been made to the salary. This will help in rationalizing the withdrawal benefit of the members. More than 23 lakh EPS members will benefit from this amendment. This will benefit the proper withdrawal benefit. For example, if a member contributes to EPS while serving for 2 years and 5 months on a monthly salary of Rs 15,000, then as per the earlier rules, he would get a withdrawal benefit of Rs 29,850, but after the amendment in the rules, he will get a withdrawal benefit of Rs 36,000.