Understanding EPS Contributions: Fixed or Flexible, and Withdrawal After 10 Years?

Hi All, I am a little confused about the EPS System. Is the EPS contribution fixed or flexible? How do we withdraw the pension amount after 10 years? If the pension amount is deducted from 1250 or above, what happens?

Regards, Rahul Gautam

EPS contribution is fixed, with a maximum of 1250/-. After 10 years of continuous service, EPS withdrawal is not possible as the pension becomes applicable. However, after 9 years of service, EPS withdrawal is possible.

If we deduct above $1250 from the pension amount, will we still be eligible for the pension? If we deduct more than $1250, what will happen?

Hi Rahul Gautam, 8.33% of the employer's contribution goes to the pension fund, with an upper limit of Rs. 1250. You can't contribute beyond Rs. 1250 even if you desire to do so.

Until completing 10 years of service, the pension contribution can be withdrawn along with the Provident Fund (PF) if you have been unemployed for more than sixty days. However, if your total service, including PF, exceeds 10 years, you can withdraw the pension contribution after reaching 58 years as a monthly pension only. Alternatively, you can opt for a reduced pension after turning 50.

Thank you.