EMPLOYEES PENSION SCHEME, 1995
(1) This Scheme may be called the Employees' Pension Scheme, 1995;
(2) (a) This Scheme shall come into force on 16th day of November, 1995;
(b) Subject to the provisions of this Scheme the employees have an option to become the members of the Scheme with effect from the 1st April, 1993 ;
(3) Subject to the provisions of Section 16 of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, this Scheme shall apply to the employees of all factories and other establishments to which the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 applies or is applied under sub-section (3) or sub-section (4) of Section 1 or Section 3 thereof.
(1) In this Scheme unless the context otherwise requires :--
(i) "Act" means the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952) ;
(ii) "actual service" means the aggregate of periods of service rendered from the 16th November, 1995 or from the date of joining any establishment whichever is later to the date of exit from the employment of the establishment covered under the Act;
(iii) "Commissioner" means a Commissioner for Employees' Provident Funds appointed under Section 5D of the Act ;
(iv) "contributory service" means the period of 'actual service' rendered by a member for which the contributions to the fund have been 1[received or are receivable];
(v) "eligible member"
(1) From and out of the contributions payable by the employer in each month under Section 6 of the Act or under the rules of the Provident Fund of the establishment which is exempted either under clauses (a) and (b) of sub-section (1) of Section 17 of the Act or whose employees are exempted under either paragraph 27 or paragraph 27-A of the Employees' Provident Fund Scheme, 1952, a part of contribution representing 8.33 per cent of the Employee's pay shall be remitted by the employer to the Employees' Pension fund within 15 days of the close of every month by a separate bank draft or cheque on account of the Employees' Pension Fund contribution in such manner as may be specified in this behalf by the Commissioner. The cost of the remittance, if any, shall be borne by the employer.
(2) The Central Government shall also contribute at the rate of 1.16 per cent of the pay of the member
(1) The employer shall pay the contribution payable to the Employees' Pension Fund in respect of 10[each member] of the Employees' Pension Fund employed by him directly or by or through a contractor.
(2) It shall be the responsibility of the principal employer to pay the contributions payable to the Employees' Pension Fund by himself in respect of the employees directly employed by him and also in respect of the employees employed by or through a contractor.
11[Provided that the Central Government shall pay the contribution payable to the Employees Pension Fund in respect of an employee who is a person with disability under the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996) and under the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardatio
12[(1) Where an employer makes default in the payment of any contribution to the Employees' Pension Fund, or in the payment of any charges payable under any other provisions of the Act or the Scheme, the Central Provident Fund Commissioner or such officer as may be authorised by the Central Government, by notification in the Official Gazette, in this behalf, may recover from the employer by way of penalty, damages at the rates given below :- -
TABLE
S.No. Period of default Rates of damages (Percentage of arrears per annum)
(1) (2) (3)
(a) Less than two months Five
(b) Two months and above but less than four months Ten
(c ) Four months and above but less than
Subject to sub-paragraph (3) of paragraph 1, the Scheme shall apply to every employee --
(a) who on or after the 16th November, 1995, becomes a member of the Employees' Provident Fund Scheme, 1952, or of the Provident Funds of the factories and other establishments exempted by the appropriate Government under section 17 of the Act, or in whose case exemption has been granted under paragraph 27 or 27-A of the Employees' Provident Fund Scheme, 1952, from the date of such membership;
(b) who has been a member of the ceased Employees' Family Pension Scheme, 1971 before the commencement of this Scheme from 16th November, 1995;
(c) Who ceased to be a member of the Employees' Family Pension Scheme, 1971 between 1st April, 1993 and 15th November, 1995 and opts to exercise his option under Paragraph7
A member of the Employees' Pension Fund shall continue to be such member till he attains the age of 58 years or he avails the withdrawal benefit to which he is entitled under para 14 of the Scheme, or dies, or the pension is vested in him in terms of para 12 of the Scheme, whichever is earlier."]
14. Inserted by G.S.R. dated 22nd February 1999 (w.e.f. 6.3.99)
(1) Members referred to under sub-para (c ) of Paragraph 6 who have died between 1st April, 1993 and 15th November, 1995 shall be deemed to have exercised the option of joining the Scheme on the date his death.
(2) Members referred to in sub-paragraph (c ) of paragraph 6 who are alive shall have the option to join the Scheme as per the provisions of paragraph 17 from the date of exit from the employment.
(3) Members referred to in sub-paragraph (d) of paragraph 6 shall have the option to join the Scheme as per the provisions of Paragraph 17 from 16th November, 1995.]
15. Substituted by G.S.R.134 dated the 28th February, 1996 (w.e.f 16th March, 1996)
If any doubt arises whether an employee is entitled to become a member of the Employees' Pension Fund, the same shall be referred to the Regional Provident Fund Commissioner who shall decide the same:
Provided that both the employer and the employee shall be heard before passing final order in the matter.
The eligible service shall be determined as follows:
(a) In the case of "new entrant" the "actual service" shall be treated as eligible service. The total actual service shall be rounded off to the nearest year. The fraction of service for six months or more shall be treated as one year and the service less than six months shall be ignored.
Explanation. In the case of employees employed seasonally in any establishment the period of "actual service" in any year, notwithstanding that such service is less than a year shall be treated as a full year.
(b) In the case of the "existing member" the aggregate of actual service and the 'past service' shall be treated as eligible service. Provided that if there is any period in the "past service" for which the contributions towards the Family Pension Sch
(1) The pensionable service of the member shall be determined with reference to the contributions 16[received or receivable] on his behalf in the Employees' Pension Fund.
(2) In the case of the member who superannuates on attaining the age of 58 years, and/or who has rendered 20 years pensionable service or more, his pensionable service shall be increased by adding a weightage of 2 years.
16. Substituted by G.S.R. 134 dated the 28th February, 1996 for "received" (w.e.f. 16th March, 1996)
(1) Pensionable salary shall be average monthly pay drawn 17[in any manner including on piece-rate basis] during the contributory period of service in the span of 12 months preceding the date of exit from the membership of the Employees' Pension Fund.
18["Provided that if a member was not in receipt of full pay during the period of twelve months preceding the day he ceased to be the member of Pension Fund, the average of previous 12 months full pay drawn by him during the period for which contribution to the pension fund was recovered, shall be taken into account as pensionable salary for calculating pension.]
(2) If during the said span of 12 months there are non-contributory periods of service including cases where the member has drawn salary for a part of the month, the total wages during the 12 months span shall be divided by the ac
(1) A member shall be entitled to: -
(a) superannuation pension if he has rendered eligible service of 10 years or more and retires on attaining the age of 58 years;
(b) early pension, if he has rendered eligible service of 10 years or more and retires or otherwise ceases to be in the employment before attaining the age of 58 years;
(2) In the case of a new entrant the amount of monthly superannuation pension or early pension, as the case may be, shall be computed in accordance with the following factors, namely: -
Monthly members pension = Pensionable salary X Pensionable service
-------------------------------------------------- 70
[12A. [***]
23. Omitted vide GSR 688(E), dated 26.9.2008 (w.e.f. 26.9.2008)
[13. [***]
24. Omitted vide GSR 688(E), dated 26.9.2008 (w.e.f. 26.9.2008)
(1) If a member has not rendered the eligible service prescribed in paragraph 25[9] on the date of exit, or on attaining 58 years of age whichever is earlier, he/she shall be entitled to a withdrawal benefit as laid down in Table 'D' or may opt to receive the scheme certificate provided on the date he/she has not attained the 58 years of age:
Provided that an existing member shall receive additional return of contributions for his/her past service under the Employees' Family Pension Scheme, 1971 computed as withdrawal-cum-retirement benefits as per Table 'A' multiplied by the factor given in Table 'B'.
25. Substituted by G.S.R. 134, dated the 28th February, 1996 (w.e.f 16th March 1996).
(1) A member, who is permanently and totally disabled during the employment shall be entitled to pension as admissible under sub-paragraph (2) to (5) of paragraph 12 as the case may be subject to a minimum of Rs. 250/- per month notwithstanding the fact that he/she has not rendered the pensionable service entitling him/her to pension under paragraph 12 provided that she/he has made at least one month's contribution to the Pension Fund.
(2) The monthly member's pension in such cases shall be payable from the date following the date of permanent total disablement and shall be tenable for the life-time of the member.
(3) A member applying for benefits under this paragraph shall be required to undergo such medical examination as may be prescribed by the Central Board to determine whether or not he or she is permanently and totally unfit for
(1) 26[Pension to the family] shall be admissible from the date following the date of death of the member if the member dies ..
(a) while in service, provided that at least one month's contribution has been paid into the Employees' Pension Fund, or
(b) after the date of exit but before attaining the age of 58, from the employment having rendered service entitling him/her to monthly member's pension but 1[before the commencement of pension payment or]
(c) after commencement of payment of the monthly member's pension
Note:- The cases where a member has rendered less than 10 years eligible service on the date of exit but has retained the membership of the Pension Fund, and dies before attaining the ge of 58 years, shall be regulated under sub-paragraph
(1) Beneficiaries of the deceased members of Employees' Family Pension Scheme, referred to in sub-para (1) of paragraph 7, shall receive higher of the benefits available under the Employees' Family Pension Scheme, 1971 and under this Scheme.
(2) Members referred to in sub-paragraph (2) of paragraph 7 shall have the option to join the Scheme by returning the amount of withdrawal benefit received, if any, together with interest at the rate of 8.5% per annum from the date of payment of such withdrawal benefit and date of exercise of the option, to receive monthly pension as per the provisions of this Scheme.
(3) Members referred to in sub-paragraph (3) of paragraph 7 shall be deemed to have joined the ceased Employees' Family Pension Scheme, 1971, with effect from 1.3.1971 on remittance of past period contribution with interest thereon.]
The claims, complete in all respects submitted along with the requisite documents shall be settled and benefit amount paid to the beneficiaries within thirty days from the date of its receipt by the Commissioner. If there is any deficiency in the claim, the same shall be recorded in writing and communicated to the applicant within thirty days from the date of receipt of such application. In case the Commissioner fails without sufficient cause to settle a claim complete in all respects within thirty days, the Commissioner shall be liable for the delay beyond the said period and penal interest at the rate of 12 per cent per annum may be charged on the benefit amount and the same may be deducted from the salary of the Commissioner.]
Every person who is entitled to become a member of the Employees' Pension Fund shall be asked forthwith by his employer to furnish and that person shall, on such demand, furnish to him for communication to the Commissioner particulars concerning himself and his family in the form prescribed by the Central Provident Fund Commissioner.
The employer shall prepare an Employees' Pension Fund Contribution Card in respect of each employee who has become a member of the Employees' Pension Fund.
(1) Every employer shall send to the Commissioner within three months of the commencement of this Scheme, a consolidated return of the employees entitled to become members of the Employees' Pension Fund showing the basic wage, retaining allowance, if any, and dearness allowance including the cash value of any food concession paid to each of such employees;
Provided that if there is no employee who is entitled to become a member of the Employees' Pension Fund, the employer shall send a "Nil" return.
(2) Every employer shall send to the Commissioner within fifteen days of the close of each month a return in respect of the employees leaving service of the employer during the preceding month.
Provided that if there is no employee leaving service of the employer during the preceding month the emplo
Every employer in relation to a factory or other establishment to which the Act applies or is applied hereafter shall furnish to the Commissioner particulars of all the branches and departments, owners, occupiers, directors, partners, managers or any other person or persons who have the ultimate control over the affairs of such factory or establishment and also send intimation of any change in such particulars, within fifteen days of such change, to the Commissioner by registered post.
Every contractor shall, within seven days of the close of every month, submit to the principal employer a statement showing the particulars in respect of employees employed by or through him in respect of whom contributions to the Employees' Pension Fund are payable and shall also furnish to him such information as the principal employer is required to furnish under the provisions of this Scheme to the Commissioner
(1) For purposes of this Scheme, where the member has already been allotted or is allotted hereafter an account number under the Employees' Provident Fund Scheme, 1952, he shall retain the same account number.
(2) In the case of employees of the establishments exempted from the Employees' Provident Fund Scheme, 1952, under Section 17 of the Act, who are members of the Employees' Family Pension Fund the account number already allotted shall be retained by them.
(3) In the case of employees of the establishments exempted from the Employees' Provident Fund Scheme, 1952, under Section 17 of the Act, who are not members of the Employees' Family Pension Fund but opt to become members of the Employees' Pension Fund and in case of new employees of such establishments, fresh account numbers shall be allotted by the Commissioner.
39. Substitute
The employer shall before taking any person into employment, ask him, her to state in writing whether or not he is a member of the Employees' Pension Fund and, if he/she is, also ask him/her to furnish a copy of the Scheme Certificate issued by the Commissioner to him/her in respect of the past employment in terms of paragraph 12 as the case may be. If the person concerned was not in employment previously or had availed of return of contribution in respect of his/her previous employment, he/she shall, on demand by the employer, furnish to him, for communication to the Commissioner particulars concerning him/herself and his/her family in the Form prescribed by the Central Provident Fund Commissioner.
40[Provided that if such person is a person with disability, the aforesaid Form shall further contain such particulars as are necessary for such person.]
40. Inserted by GSR No. 252(
The account called the "Employees' Pension Fund Account" shall be opened by the Commissioner in such manner as may be specified by the Central Board with the approval of Central Government.
(1) All moneys accruing to Employees' Pension Fund Account except the contributions of the Central Government shall be invested in accordance with the provisions of paragraph 52 of the Employees' Provident Funds Scheme, 1952.
(2) Net assets of the Family Pension Fund as on the 16.11.95 shall merge in the Pension Fund and remain invested in the Public Account of the Government of India. The future Central Government's contribution accruing to the Pension fund from 17th November, 1995 onwards shall also be invested in the Public Account of the Government of India.
(1) Subject to the provisions of the Act and this Scheme, the Fund shall not, except with the prior sanction of the Central Government be expended for any purpose other than the payments envisaged in this Scheme, for continued payment of Family Pension, life assurance benefit and retirement-cum-withdrawal benefits sanctioned under the Employees' Family Pension Scheme, 1971, prior to the date of introduction of this Scheme or which may be sanctioned under that Scheme after the 16th November, 1995 in respect of cases arising before that date.
43[(2) All administrative expenses shall be met from the Central Administration Account as specified in paragraph 49 of the Employees Provident Funds Scheme, 1952. However, the cost of remittance of Pension shall be charged on the Pension Fund]
43. Substituted by G.S.R. 134, dated the 28th February, 1996 (w.e.f 16th March 1996)
42[***]
42. substituted by GSR 3 dated 29.12.2006
The accounts of the Employees' Pension Fund, as also the Employees' Pension Administration Account shall be maintained by the Commissioner in such form and in such manner as may be specified by the Central Board with the approval of the Central Government.
The accounts of the Employees' Pension Fund including the administrative expenses incurred in running this Scheme shall be audited in accordance with the instructions issued by the Central Government in consultation with Comptroller and Auditor-General of India.
All items of benefits shall be calculated to the nearest rupee, 50 paise or more to be counted as the next higher rupee and fraction of a rupee less than 50 paise shall be ignored.
43[(1) The Central Government shall have an annual valuation of the Employees' Pension Fund made by a Valuer appointed by it.]
(2) At any time, when the Employees' Pension Fund so permits the Central Government may alter the rate of contributions payable under this Scheme or the scale of any benefit admissible under this Scheme or the period for which such benefit may be given.
43. Substituted by G.S.R. 134, dated the 28th February, 1996 (w.e.f 16th March 1996)
44[The Commissioner shall with the approval of the Central Board enter into arrangement for the disbursement of pension and other benefits under this Scheme with disbursing agencies like Post Offices or Nationalised Banks or Treasuries or Scheduled Commercial banks including Regional Rural banks or Co-operative Banks. The commission payable to the disbursing agencies and other charges incidental thereto shall be met as provided in paragraph 27 of this Scheme.]
44. Modified by GSR 746(E), dated the 27.9.2001 (w.e.f. 28.9.2001)
The Commissioner shall, with the approval of the Central Board, prescribe the registers and records to be maintained in respect of the employees, the form or design of any identity card, token or disc for the purpose of identifying any employee or his nominee or a member of a family entitled to receive the pension and such other forms/formalities as have to be completed in connection with the grant of pension and other benefits or for the continuance thereof subject to such periodical verification as may be considered necessary.
The Central Government may issue, such directions as may be deemed just and proper by it for resolving any difficulty in the disbursement of pension and other benefits or for resolving any difficulty in implementation of this Scheme.
The Regional Committee set up under paragraph 4 of the Employees' Provident Fund Scheme, 1952, shall advise the Central Board, on such matters, in relation to the administration of this Scheme as the Central Board may refer to it from time to time and in particular, on - -
(a) progress of recovery of contributions under this Scheme both from factories and establishment exempted under Section 17 of the Act and other factories and establishments covered under the Act.
(b) expeditious disposal of prosecutions.
(c) Speedy settlement of claims relating to pension and other benefits under this Scheme.
The Central Board shall cause to be included in the Annual Report on the working of the Scheme prepared under paragraph 74 of the Employees' Provident Fund Scheme, 1952, a report on the working of this Scheme during the previous financial year.
In regard to matters for which either there is no provision or there is inadequate provisions in this Scheme the corresponding provisions in the Employees' Provident Fund Scheme, 1952, shall apply.
The Employees Pension Scheme, 1995 (EPS 1995) is a social security scheme formulated under the Employees Provident Funds and Miscellaneous Provisions Act, 1952 (EPF Act) to provide pension benefits to employees in the organized sector. Section Sche.38 pertains to the application of the scheme's provisions, including the conditions for membership, eligibility, and benefits. The scheme aims to ensure financial security for employees post-retirement, disability, or in case of death, and is a vital component of social welfare legislation.
Section Sche.38 of the EPS 1995 primarily deals with the application of the scheme to employees, the criteria for membership, and the conditions under which pension benefits are payable. It stipulates that the scheme applies to employees of establishments covered under the EPF Act, with specific provisions for existing members of previous schemes and new entrants. It also details the circumstances under which an employee ceases to be a member and the eligibility for pension.
This comprehensive legal commentary underscores the scheme's application, eligibility, computation, and enforcement principles, highlighting the scheme’s role in social welfare and the legal safeguards for employees’ pension rights under Section Sche.38 of the Employees Pension Scheme, 1995.
The appropriate Government may grant exemption to any establishment or class of establishments from the operation of this Scheme, if the employees of the establishments are either members of any other pension scheme or proposed to be members of a pension scheme wherein the pensionary benefits are at par or more favourable than the benefits provided under this Scheme. Where exemption is granted to any establishment or class of establishments under this paragraph, withdrawal benefits available to the credit of the employees of such establishment(s) under the ceased Family Pension Scheme, 1971, shall be paid, subject to the consent of the employees, to the pension fund of the establishment(s) so exempted. An application for exemption under this paragraph shall be presented to the Regional Provident Fund Commissioner having jurisdiction by the establishment or class of establishments, together with a copy of the pension scheme of
The Central Board shall furnish such information to the Central Government from time to time in respect of the income and expenditure from the Employees' Pension fund account in such manner as may be directed by the Central Government.
Where any doubt arises with regard to the interpretation of the provisions of this Scheme, it shall be referred to the Central Government who shall decided the same
If any person,
(a) deducts or attempts to deduct from the wages or other remuneration of the member, the whole or any part of the employer's contribution, or
(b) fails or refuses to submit any return, statement or other documents required by this Scheme or submits a false returns, statement or other documents, or makes a false declaration, or
(c) obstructs any Inspector or other official appointed under the Act or this Scheme in the discharge of his duties or fails to produce any record for inspection by such inspector or other officials, or
(d) is guilty of contravention of or non-compliance with any other requirement of this Scheme, he shall be punishable with imprisonment which may extend to one year or with fine which may extend to five thousand
(1) If a person, who in the event of the death of a member of the Pension Fund is eligible to receive pension of the deceased under paragraph 12 or paragraph 16, is charged with the offence of murdering the member or for abetting the commission of such an offence, his claims to receive pension shall remain suspended till the conclusion of the criminal proceedings instituted against him for such offence.
(2) If on the conclusion of the criminal proceedings referred to in sub-paragraph (1), the person concerned is:
(a) convicted for the murder or abetting in the murder of the member, he shall be debarred from receiving pension which shall be payable to other eligible members if any, of the family of the member; or
(b) acquitted of the charge of murder or abetting the murder of the member, pensi
The Scheme shall, in its application to International Workers as defined in paragraph 83 of the Employees Provident Fund Scheme, 1952 be subject to the following modifications, namely:-
(1) For clause (xv) of paragraph 2, the following clause shall be substituted, namely:-
(xv) pensionable service means the service rendered by the member covered by an international social security agreement for which contributions have been received or are receivable, the period of service rendered and considered as eligible under such agreement.
(2) For sub-para (1) of paragraph 10, the following sub-paragraph shall be substituted, namely:-
10. Determination of pensionable service:-
(1) The pensionable service of the mem
(1) On commencement of this Scheme, the Employees' Family Pension Scheme, 1971, in force immediately before such commencement shall cease to operate with effect from the 16th November, 1995.
(2) Notwithstanding anything contained in sub-paragraph (1) every nomination made under the Employees' Family Pension Scheme, 1971, and every form regarding the details of Family of an employee for the purposes of the Employees' Family Pension Scheme, 1971, shall be deemed to have been made under the provisions of this Scheme.
(3) All orders/authorisations/Pension Payment Orders issued under the Family Pension Scheme, 1971, shall be deemed to have been made under.
SCHEDULE
TABLE - A
(See Paragraph 14) (WITHDRAWAL BENEFIT)
No. of full years contribution paid Proportion of pay payable at cessation of membership
(1) (2)
1 0.20
2 0.41
3 0.62
4 0.84
5 1.06
6 1.29
7 1.51
8 1.75
9 1.98
10 2.23
11 2.47
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