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Latest Amendments in Provident Fund w.e.f. 01.09.2014

Latest amendments in Provident fund is that who on or after the 16th November, 1995,become a member of 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 or whose pay on such date is less than or equal to 15000/- rupees from the date of such membership.

Determination of Pensionable Salary:

Pensional Salary shall be average monthly pay drawn (in any manner including on piece-rate basis) during the contributory period of service in the span of 60 months preceding the date of exit from the membership of the Employees' Pension Fund and the pensionable salary shall be determined on prorata basis for the pension service up-to 01.09.2014, subject of a maximum of Rs. 6500/- PM and for the period thereafter Rs. 15000/- PM.

"Provided that if a member was not in receipt of full pay during the period of 60 months preceding the day he creased to be the member of Pension Fund, the average of previous 60 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".

(4) Inserted: Existing Members already contributing on salary exceeding Rs. 6500/-, may continue to contribute on salary exceeding Rs. 15000/- by a fresh option.  In this case additional contribution @ 1.16% is to be made from employee contribution on salary exceeding Rs. 15000/-.

Fresh Option for additional contribution to EPS on salary exceeding Rs. 15000/- can be made up to 01.032015 and the date can be extended further up-to 01.09.2015 if RPFC is satisfied by the cause.

If no fresh option has been made, the contribution on salary exceeding Rs. 15000/- to EPS will be diverted/transferred back to EPF Account with specified interest.

Changes by EPS (Amendment 2nd)-2014
Monthly Member's Pension:
7(A) Inserted:  The monthly members' pension including any relief payable to any existing or future member under this paragraph shall not be less than 1000/- rupees.

Benefits on permanent and total disablement during the service:

A member, who is permanently and totally disabled during the employment shall be entitled to pension as admissible under 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 lease one month's contribution to the Pension Fund.

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