In a move that could significantly impact the retirement savings of millions of salaried employees, the Employees’ Provident Fund Organisation (EPFO) has announced five changes to the Employees’ Pension Scheme (EPS). These revisions are intended to simplify pension access, increase benefits, and improve portability for members across the country.

The most crucial change concerns the method of pension calculation. Earlier, the pension was determined based on the employee’s last drawn salary. Under the revised rule, it will now be calculated on the average salary of the last 60 months of employment. This ensures a fair and realistic computation, especially for employees whose salary increased gradually over time. Though this provision has been in effect since September 1, 2014, EPFO has now

See Full Page