Important Update On Employees Provident Fund - Details Here

The Government of India has amended the Employees’ Pension Scheme (EPS), 1995 to provide withdrawal benefits to EPS members with less than 6 months of contributory service. This change is expected to benefit more than 7 lakh EPS members annually who leave the scheme with less than 6 months of service.

Additionally, the Central Government has modified Table D to ensure fair payment of withdrawal benefits. Now, every completed month of service will be considered for calculating the withdrawal benefit, providing a more proportional payout. This modification will benefit over 23 lakh members each year.

In the past, only members with 6 months or more of contributory service were eligible for withdrawal benefits, leading to numerous claim rejections and grievances. In the financial year 2023-24, around 7 lakh claims were rejected due to contributory service being less than 6 months. With this amendment, members who have not attained the age of 58 years as of June 14, 2024, will be entitled to withdrawal benefits, regardless of their contributory service duration.

Previously, Table D calculations ignored service periods of less than 6 months after each completed year, resulting in reduced withdrawal benefits. The revised Table D now considers contributory service in completed months, ensuring fairer payments. For example, a member with 2 years and 5 months of contributory service and a monthly wage of Rs. 15,000 would previously receive Rs. 29,850 in withdrawal benefits. Under the new rules, they will now receive Rs. 36,000.