The Ministry of Labor and Employment vide its Notification no. G.S.R. 657(E) dated July 1, 2016 issued the Employees' Pension (Fifth Amendment) Scheme, 2016 ("Scheme"). Employees' Provident Fund Scheme, 1952 and Employees' Pension Scheme, 1995 ("EPS") are the two different retirement saving schemes under Employees' Provident Funds and Miscellaneous Provisions Act, 1952, meant for salaried employees. EPS offers many benefits such as - pension on disablement, widow pension, and pension for nominees.

The EPS prescribed that the existing members who had been contributing on salary exceeding six thousand and five hundred rupees per month could on a fresh option to be exercised jointly by the employer and the employee continue to contribute on salary exceeding fifteen thousand rupees per month. Now, in terms of the notified Scheme, it has been prescribed that the pensionable salary for the existing members who prefer such fresh option shall be based on the higher salary.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.