EPS stands for Employee’s Pension Scheme, which is a social security scheme under the Employee’s Provident Funds and Miscellaneous Provisions Act, 1952 in India. The scheme provides pension benefits to employees who are covered under the EPF scheme and have completed a minimum period of service. The scheme is administered by the Employees’ Provident Fund Organization (EPFO), a statutory body under the Ministry of Labour and Employment, Government of India.
Under the EPS scheme, a certain percentage of the employee’s salary is contributed towards the pension fund, along with a matching contribution from the employer. The contributions made towards the pension fund earn interest and grow over time, providing a pension corpus for the employee’s post-retirement life.
The pension amount under the EPS scheme is calculated based on the length of service and the average salary of the employee. The pension is payable for life and is also eligible for an annual increase based on the cost of living index.
The EPS scheme is an important social security measure for employees in India, which provides financial security in their post-retirement life. It ensures that employees have a stable and secure source of income after they retire from their work.
