Good news has come for lakhs of subscribers of the Employees Provident Fund Organization (EPFO). The government has changed the EPFO pension rules, benefiting about 23 lakh private sector employees.
7 Lakh Claims Rejected Last Year
The government announced on Friday that it had changed pension rules. According to the statement, the government has made changes in Table D. After this change, employees with less than 6 months of contribution can now withdraw under the Employees Pension Scheme. Previously, at least 6 months of contribution was required. Due to this, about 7 lakh employee claims were rejected in the financial year 2023-24 alone.
Estimated To Benefit More Than 23 Lakh People
The government believes the changes made in Table D of the Employees Pension Scheme 1995 will benefit more than 23 lakh employees. This change has ensured that the employees’ monthly contributions will be added to the account, and the withdrawal benefits will be calculated proportionately to the service period.
This Is How The Benefits Will Be Calculated
This means that the withdrawal amount in the EPFO pension scheme for employees will now depend on the months of service and the remuneration based on the contribution to EPS. Until now, the calculation of the withdrawal benefit has depended on the period of contributory service, in which a minimum of 6 months of contributory service is necessary. Till now, lakhs of claims have been rejected due to the lack of at least one continuous service of 6 months.
Now Benefits Will Be Available On Fractional Service Also
Table D of EPS mentions the benefits available to EPFO subscribers who have contributed to EPS and have left the service or whose age has reached 58. After the change in the rules of Table D, the employees will also be ensured they get benefits based on fractional service.
