The Employees Pension Scheme (EPS), 1995 calculates the pension of members based on the pensionable service and pensionable salary of the member, according to the provisions of the EPS, 1995. The maximum pensionable salary was capped at Rs. 15,000 per month for members joining after September 1, 2014, however, the cap would not apply to existing members as of September 1, 2014 who were contributing above the wage ceiling and had opted to continue contributing above it.
Pension under employees pension scheme
GOVERNMENT OF INDIA
MINISTRY OF LABOUR AND EMPLOYMENT
UNSTARRED QUESTION NO. 636
TO BE ANSWERED ON 06.02.2023
PENSION UNDER EMPLOYEES PENSION SCHEME
- SHRI GIRIDHARI YADAV:
Will the Minister of LABOUR AND EMPLOYMENT be pleased to state:
(a) whether the calculation of pension under the Employees Pension Scheme is fixed on the basis of basic salary with a maximum cap at Rupees 15000 due to which the employees getting higher salary do not get a proper pension;
(b) if so, whether the Government proposes to calculate pension on the basis of actual basic pay; and
(c) if not, the reasons therefor?
MINISTER OF STATE FOR LABOUR AND EMPLOYMENT (SHRI RAMESWAR TELI)
(a) to (c): Pension of member under the Employees’ Pension Scheme (EPS), 1995 is calculated on the basis of pensionable service and pensionable salary of the member in accordance with the provisions of the EPS, 1995.
With effect from 01.09.2014 the maximum pensionable salary is limited to Rs. 15,000 per month for the members joining on or after 01.09.2014. However, the pensionable salary cap of Rs. 15,000 for calculation of pension would not apply for the existing members as on 01.09.2014 who were contributing above wage ceiling and had opted to contribute above the prevalent wage ceiling.
Source: Lok Sabha