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Who can be nominated for EPS?
Member having family can nominate any one or more of the family members as defined under the Para 2 (f) of the EPF Scheme, 1952. Member not having any family member as defined in the said Para can nominate any other person, but the nomination will become invalid in case of the member acquiring family.
What happens after death EPS?
“As per EPS rules, a spouse and two children will get pension upon the death of an EPS member. The children must be below 25 years of age and will receive 25\% of the widow’s pension until they turn 25,” said Singh. A disabled child will get 75\% of the widow’s pension share until his or her lifetime.
What is difference between EPF and EPS nomination?
Under the EPF scheme, both the employer and employee contribute to the EPF Account. EPS stands for Employee Pension Scheme and it is offered to employees whose basic salary plus dearness allowance is up to Rs. 15, 000. Under the EPS scheme, the employer contributes to the scheme, not the employee.
What is the maximum pension in EPS?
7,500 per month is the maximum pension that one can earn through EPS.
Is nominee mandatory for PF account?
Every member should name a candidate or nominee to receive the EPF’s funds if he or she passes away prematurely. In India, the employee provident fund is a mandatory deduction for salaried employees who work for companies that are registered with the Employees’ Provident Fund.
Why is EPS nominated?
Provident Fund Update: EPFO members should file e-Nomination to provide social security to their family members. Employees’ Provident Fund Organisation (EPF) requests contributions from its members in order to ensure the social security of users’ family members.
What is EPS pension?
Employee’s Provident Fund (EPF) and Employee Pension Scheme (EPS) are framed under the Employee’s Provident Fund & Miscellaneous Provisions Act, 1952. The schemes are administered by the central board of trustees that consist of representatives of government (both central and state), employers and employees.
Is EPS Nomination mandatory?
Since EPS is sponsored by the Indian Government, the returns are guaranteed and there are no risks to invest in the scheme. The amount that will be returned will be fixed and no changes will be made. It is mandatory for employees who earn a basic salary plus DA of Rs. 15,000 or less to enrol in the scheme.
Can EPF and EPS nominee be same?
Here is how. Employees Provident Fund Organisation or EPFO asks for nomination from EPF or PF account holders. The EPFO has tweeted in this regard citing, “Members should file e-Nomination today to provide #SocialSecurity to their families. …
What is EPS nomination?
What is EPS and how does it work? A scheme backed by the Government of India is the EPS. The nominees will also receive a pension under this scheme. The employer contributes 8.33\% of the 12\% share of the employee’s basic salary and DA towards the scheme. Employees are not allowed to contribute to the pension scheme.
Can a member of the EPs change his or her nomination?
Yes, a member of the EPS can change his or her nomination with the rules for such nomination. It simply means that the nominee should be a family member of the employee. Only if the employee has no family, then he or she can nominate anyone else according to their wish. Under the EPS, is employee the only beneficiary of the fund?
What is the difference between EPs and other pension schemes?
Unlike other pension schemes such as NPS, where a family gets the accumulated pension corpus. In EPS, the family gets the pension and not the accumulated corpus after the death of an employee. For the purpose of pension calculation, if the service duration is equal to or more than 6 months, it will be rounded off to 1 year.
What are the terms and conditions of the employees’ pension scheme?
Some of the important terms and conditions of the Employees’ Pension Scheme are: An employee must complete a minimum of 10 years in service in order to avail pension through EPS. An employee can only avail pension after he or she turns 50 years old. An employee cannot have more than one EPF account.
What are the benefits of existing employees’ pension scheme?
Existing, as well as new EPF members, can avail the benefits of the scheme. The employee and employer each contribute 12\% of the employee’s basic salary and Dearness Allowance (DA) towards EPF. While the entire share of the employee is contributed towards EPF, 8.33\% of the employer’s share goes towards EPS.