Subscribers of the Employees’ Provident Fund (EPF) diligently track the steadily rising balance in their EPF passbook: the combined pool of their own 12% contribution, a part of the employer’s share (3.67%) and the accumulated interest. But its quieter counterpart, the Employees’ Pension Scheme (EPS), rarely gets the same attention. That neglect may prove costly.
How EPS Works
For eligible members, 8.33% of the employer’s contribution is compulsorily diverted to EPS, subject to a wage ceiling. A pension becomes payable at age 58, after 10 years of contributory service is complete. Unlike EPF, however, EPS does not build a visible corpus and cannot be withdrawn as a lump sum. Its low visibility means most employees seldom scan their passbook for EPS entries, allowing errors to slip by that later may lead to serious consequences.
Common Errors and Their Impact
- Incorrect wage details: If your employer reports a lower salary than actual, your EPS contribution and eventual pension are reduced.
- Missing contribution periods: Gaps in service or failure to transfer EPS funds when changing jobs can break your 10-year eligibility.
- Wrong date of birth: This can delay pension eligibility or reduce the number of years of service counted.
How to Check and Fix Errors
Employees should regularly check their EPS passbook on the EPFO portal. Any discrepancy must be raised with the employer or through a joint request to the EPFO. Delays can be costly, as corrections after retirement are difficult and often require legal intervention.
By staying vigilant, you can ensure that your EPS records are accurate and that you receive the full pension you deserve after a lifetime of work.
