The Ministry of Labor and Employment vide its Notification no.
G.S.R. 657(E) dated July 1, 2016 issued the Employees' Pension
(Fifth Amendment) Scheme, 2016 ("Scheme"). Employees'
Provident Fund Scheme, 1952 and Employees' Pension Scheme, 1995
("EPS") are the two different retirement saving schemes
under Employees' Provident Funds and Miscellaneous Provisions
Act, 1952, meant for salaried employees. EPS offers many benefits
such as - pension on disablement, widow pension, and pension for
nominees.
The EPS prescribed that the existing members who had been
contributing on salary exceeding six thousand and five hundred
rupees per month could on a fresh option to be exercised jointly by
the employer and the employee continue to contribute on salary
exceeding fifteen thousand rupees per month. Now, in terms of the
notified Scheme, it has been prescribed that the pensionable salary
for the existing members who prefer such fresh option shall be
based on the higher salary.
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