The government has amended the rules of EPS 95 to allow withdrawal even to employees with less than 6 months of service. The amendment in Table D will provide more withdrawal benefits to 23 lakh employees, which will increase their financial security.
The government has made significant changes in the rules of the Employees’ Pension Scheme (EPS) 1995, which will benefit lakhs of employees. Under this change, now even employees with less than 6 months of contributory service will be able to withdraw money from the EPS account. With this, every year about 7 lakh employees, who were earlier deprived of this facility, will now be able to avail of it.
What is the new rule?
The Ministry of Labor has announced that now employees who have contributed for less than 6 months under EPS will also be eligible for withdrawal benefits. Earlier, only employees who served for 6 months or more were eligible for this benefit. This amendment has brought relief to those employees whose claim applications were rejected due to not completing the minimum period of service.
Amendment in Table D also
The government has also amended Table D, so that now the withdrawal benefit will be based on the period of service and salary of the member. This means that now the employees will get rational withdrawal benefit based on their contribution. This change will directly benefit more than 23 lakh EPS members. For example, if a member serves for 2 years and 5 months on a monthly salary of Rs 15,000, then as per the earlier rules, he used to get Rs 29,850. But now under the new rule, he will get a withdrawal benefit of Rs 36,000.
Why was this change necessary?
In 2023-24, 7 lakh withdrawal claim applications were rejected, as these applicants had contributed to EPS for less than 6 months. After this decision of the government, all such EPS members who have not attained the age of 58 years by June 14, 2024 will also become eligible for the benefit of withdrawal.
Labor Ministry statement
The Labor Ministry said that this change is for those members of the EPS 95 scheme who are unable to contribute continuously for 10 years and leave the scheme midway. Now these members will also be able to avail the benefits of their contribution.
How will you get the benefit?
Under the new rule, any employee will get withdrawal benefits based on the duration and salary of his EDP (Employment Deduction Period). This benefit will be available even if the employee has contributed to EPS for less than 6 months. This will give more benefits to the employees according to their services and their funds will be used properly.
This move of the government has brought relief to lakhs of employees who were not able to get proper benefits from EPS till now. Amendment in Table D and extension of withdrawal facility for employees with less than 6 months of service is a welcome step. This will not only give the employees the right benefit of their contribution but will also ensure their financial security.
All the employees concerned with this change are advised to contact their respective office or HR department and claim their EPS withdrawal benefits under this new rule.