The government has allowed Employees Pension Scheme (EPS) subscribers to defer drawing their pension until they attain 60 years of age, from the present 58 years.
Under the present law, members are not allowed to contribute towards pension or defer withdrawing the pension after attaining 58 years of age.
Also, an employee can receive pension only after minimum 10 years of service.
New rulesThe government’s new rules to increase the age criteria to 60 years of age for pension contributions and benefits were notified on April 25.
At present, 8.33 per cent of a worker’s salary up to Rs.15,000 a month, is remitted to the Employees’ Pension Scheme of 1995.
“New changes in the EPS can help members draw higher pensions by way of deferment of pension and or by contributing to the EPS till the age of 60 years.
“The move by the government can help improve pension adequacy for EPS members,” according to consultancy firm KPMG India.
A senior Labour Ministry official said this is a voluntary scheme that could be availed by EPS subscribers at their own will.The move is a part of the government’s attempt to strengthen the employees pension scheme.
Recently, labour and employment minister Bandaru Dattatreya had said that the government was looking to increase the minimum monthly pension amount.
Under the present scheme, employees get a minimum pension of Rs.1,000 every month.
