Tuesday, 21 July 2015

EPS AND EPF - Main Social Security Schemes

FOR PUBLIC/PRIVATE SECTOR EMPLOYEES IN INDIA


The Constitution of India under "Directive Principles of State Policy" provides that the State shall , within the limits of its economic capacity, make effective provision for securing the  right to work, to education and to public assistance in cases of unemployment, old-age, sickness & disablement and undeserved want. The EPF & MP Act, 1952 was enacted by  Parliament and came into force with effect from 4th March,1952. A series of legislative  interventions were made in this direction, including the Employees' Provident Funds and Miscellaneous Provisions Act, 1952.  Presently, EPS 1995 SCHEME and the EPF SCHEME 1952 are in operation under the Act:

All the Public/Private Sector employees ,employed not before the commencement of the above schemes, are advised as under :

  1. To keep a track of their EPF contributions along with EPS contributions.
  2. Never to withdraw their EPF contributions when they change employment.
  3. PF account balance  of old employer must be got clubbed with the PF account of new employer so as to retain the EPS account for optimization of the receivable pension at the time of   superannuation/retirement .
  4. Maintain your own MIRROR ACCOUNT for EPF and EPS contributions as small missing credits can have a multiplier effect on the Final PF Balance and receivable PENSION.

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