abcvasdfghjk

1. Provision of Higher Pension under the
Employees’ Pension Scheme,1995
What is EPS- Every month, 12 percent of your basic salary goes to your EPF account. Your
employer matches that with another 12 percent. While your contribution goes entirely to
the EPF account, a part of your employer contribution goes to your EPS account. Of the
employer’s contribution, 8.33 percent of the statutory wage ceiling( i.e 15000) goes into
another account, called the EPS.

2. This information was prepared by Antara Senior Living Ltd. It is not to be used or relied upon by any 3rd party without Antara’s written consent.
Impact on Pension Contributions: Example
Assume a Basic Salary of Rs. 1,00,000/-
Present Contributions
• Employee PF– Rs. 12000
• Pension Fund- Rs. 1250
• Employer PF - Rs. 10750
Monthly Contributions if opted for Higher Pension
• Employee’s PF– Rs. 12000
• Pension Fund- Rs. 8330
• Employer PF - Rs. 3670 (PF fund will go down
The judgment, however, does not affect employers or the industry as a whole, only for the Voluntary Higher EPS
enrolled / willing employees, this will have an impact.
Arrears of Pension Contributions with Interest from November 1995 or the date of joining whichever
is later will be transferred from Employer PF to Pension Fund.

3. This information was prepared by Antara Senior Living Ltd. It is not to be used or relied upon by any 3rd party without Antara’s written consent.
Would it be beneficial to make higher pension contributions to the Pension
Scheme?
Currently, your pension after retirement will be calculated based on the formula:
Pensionable salary x pensionable service/70. Your pensionable salary in the
above formula would have been capped at ₹15,000/month. But if you now opt
for a higher pension based on your actual pay (basic plus permanent
components), the pensionable salary in the above formula will be much higher.
This can give you a higher government-guaranteed pension after retirement. But
do note that opting for a higher pension comes with a trade-off. It will mean part
of your EPF balances accumulated so far with interest will be permanently
transferred to the Centre’s EPS kitty. This will mean a lower lump sum payout to
you at retirement