TaxTMI 
TaxTMI 
Employees' Pension Scheme, 2026.
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....(1) In this Scheme, unless the context otherwise requires; (a) " actual service " means the aggregate of period of service rendered from the 16th November, 1995 or from the date of joining any establishment whichever is later to the date of exit from the employment of the establishment covered under the Code; (b) "Code" means Code on Social Security, 2020 (36 of 2020); (c) "Commissioner " means a Central Provident Fund Commissioner, an Additional Central Provident Fund Commissioner, a Deputy Provident Fund Commissioner, a Regional Provident Fund Commissioner and an Assistant Provident Fund Commissioner appointed under section 14 of the Code; (d) "contributory service" means the period of actual service rendered by a member for which the contributions to the fund have been received or are receivable; (e) " eligible family " means - (i) wife in the case of male member; (ii) husband in the case of a female member; and (iii) sons and daughters of a member Explanation. - The expression " sons " and " daughters " shall include children legally adopted by the member; (f) " existing member " means an ....
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....tinue to be maintained as the Pension Fund Account under this Scheme. 4. Pension Fund. - (1) From and out of the contributions payable by the employer in each month under clause (a) of sub-section (1) of section 16 of the Code or under the rules of the Provident Fund of the establishment which is exempted under section 143 of the Code, a part of contribution of eight and thirty-three hundredths per cent. of the wages of employee up to wage ceiling notified by the Central Government, shall be remitted by the employer to the Pension Fund within fifteen days of the close of every month in the account of the Central Board and the cost of the remittance, if any, shall be borne by the employer. (2) The Central Government shall contribute to the Scheme at the rate of one and sixteen hundredths per cent. of the pay of the members of the Employees' Pension Scheme, limited to such sum as may be specified by the Central Government : Provided that where the wage of the member exceeds the wage ceiling notified by the Central Government, the contribution payable by the employer and the Central Government shall be limited to the amount payable on wages up to such wage ceiling : Pr....
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....of this Scheme. Explanation. - An employee shall cease to be the member of Pension Fund from the date on attaining the age of superannuation or from the date of vesting admissible benefits under this Scheme, whichever is earlier. (2) A member of the Pension Fund shall continue to be such member until the earliest of the following events, namely:- (a) attainment of age of superannuation; (b) availing of the withdrawal benefit under paragraph 13; (c) death of the member; (d) vesting of pension in the member under paragraph 12. 8. Resolution of doubts. - Where a doubt arises as to whether an employee is entitled to become a member of the Pension Fund, the matter shall be referred to the Regional Provident Fund Commissioner, who shall decide the same: Provided that both the employer and the employee shall be afforded an opportunity of being heard before passing the final order in the matter. 9. Determination of eligible service. - (1) In the case of a member other than an existing member, the contributory service shall be treated as eligible service and the total contributory service shall be rounded off to the nearest year, with....
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....h wages were drawn and the amount so derived shall be multiplied by thirty to determine the average monthly wages. (3) The maximum pensionable wages shall be limited to the notified wage ceiling per month. 12. Monthly pension. - (1) A member shall be entitled to- (i) superannuation pension, where the member has rendered eligible service of not less than ten years and retires on attaining the age of superannuation; (ii) early pension, where the member has rendered eligible service of not less than ten years and retires or otherwise ceases to be in the employment before attaining the age of superannuation. (2) Where a member other than an existing member, the amount of monthly superannuation pension or early pension, as the case may be, shall be computed in accordance with the following formula: - Provided that the monthly pension of a member shall be determined on a pro rata basis for every wage ceiling period. Provided further that pensionable wages shall be subject to a maximum of the wage ceiling applicable to each such period. (3) Where an existing member in respect of whom the date of commencement of pension is after the 16th November, 2005, ....
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....hree hundred and twenty-five rupees per month. (5) In the case of an existing member and in respect of whom the date of commencement of pension is before the 16th November, 2000,- (a) the superannuation or early pension shall be equal to the aggregate of- (i) pension as determined under sub-paragraph (2) for the period of service rendered from the 16th November, 1995 or three hundred and thirty-five rupees per month, whichever is more; (ii) past service pension as provided in sub-paragraph (3). (b) The aggregate of sub-clauses (i) and (ii) calculated as above shall be subject to a minimum of five hundred rupees per month: Provided that the eligible service is twenty-four years: Provided further that it is less than twenty-four years, the pension shall be proportionately reduced but subject to the minimum of two hundred and sixty-five rupees per month. (6) Except as otherwise expressly provided hereinafter the monthly pension under sub-paragraphs (2) to (5) shall be payable from a date immediately following the date of completion of the age of superannuation, even if the member has retired or ceased to be in the employment ....
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....e of superannuation, - (i) the member may, on option, either- (a) be paid pension as admissible under this Scheme on attaining an age exceeding fifty years; or (b) be issued a scheme certificate by the Commissioner indicating the pensionable service, the pensionable wages and the amount of pension due on the date of exit from the employment. (11) Where such a member is subsequently employed in an establishment covered under this Scheme, the earlier service as recorded in the scheme certificate shall be reckoned together with the fresh spell of pensionable service. (12) A member postponing the commencement of pension under this paragraph shall be entitled to such additional relief as may be sanctioned under this Scheme: Provided that- (a) Where a member does not take up an employment covered under this Scheme and has rendered less than ten years of eligible service on the date of exit, but dies before attaining the age of superannuation and before a continuous period of thirty-six months has elapsed during which contributions have not been received in respect of the member in the Pension Fund, the amount of contributions received in this ....
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....ees per month, notwithstanding the fact that the member has not rendered the pensionable service required under paragraph 12: Provided that the member has made at least one month's contribution. (2) The monthly pension payable under sub-paragraph (1) shall commence from the date immediately following the date of the permanent total disablement and shall continue for the lifetime of the member. (3) A member claiming benefits under this paragraph shall undergo such a medical examination as may be specified by the Central Board, for the purpose of determining whether the member is permanently and totally unfit for the employment which the member was performing at the time of disablement. 15. Benefits on death of member. - (1) Pension to the eligible family shall be admissible from the date immediately following the date of death of the member, where the member dies- (a) while in service; Provided that at least one month's contribution has been paid into the Pension Fund; or (b) after the date of exit but before attaining the age of superannuation, having rendered service entitling the member to a monthly pension but before the commencemen....
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....s pension for each child shall be equal to twenty-five per cent. of the amount admissible to the widow under clause (a) of sub- paragraph (2): Provided that the minimum monthly children's pension, including relief, if any, shall not be less than two hundred and fifty rupees per child.- (i) shall be payable until the child attains the age of twenty-five years; (ii) shall be admissible to a maximum of two children at a time, in order from eldest to youngest; (iii) where a deceased member leaves behind a son or daughter who is permanently and totally disabled, such a child shall be entitled to monthly children pension or orphan pension, as the case may be, irrespective of age and the number of children in the family, in addition to the pension under clause (ii). (4)(a) Where deceased member is not survived by any widow, but is survived by children falling within the definition of eligible family and where the widow pension is not payable, the children shall be entitled to a monthly orphan pension equal to seventy-five percent of the monthly widow pension under clause (a) of sub-paragraph (2): Provided that the minimum monthly orphan pension inclu....
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....settled and benefit amount paid to the beneficiaries within twenty days from the date of its receipt by the Commissioner. (2) Where there is any deficiency in the claim, the same shall be recorded in writing and communicated to the applicant within twenty days from the date of receipt of such an application. (3) Where the Commissioner fails without sufficient cause to settle a claim complete in all respects within twenty days, the Commissioner shall be liable for the delay beyond the said period and interest at the rate of twelve per cent. per annum may be charged on the benefit amount, which may be deducted from the salary of the Commissioner. 18. Duties of employer. - (1) Every employer shall, within fifteen days of the application of this Scheme to the establishment, send to Commissioner a consolidated return as specified in the Employees' Provident Funds Scheme, 2026, containing the details of employees required or entitled to become members of the Pension Fund, including wages paid to such employee: Provided that where no employee is required or entitled to become a member of the Pension Fund, the employer shall file a 'Nil' return. (2) Every employer sh....
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....eme or sanctioned thereafter in respect of cases arising before 1st April, 2026; and (iii) continued payment of family pension, life assurance benefit and retirement-cum-withdrawal benefits sanctioned under the Employees' Family Pension Scheme, 1971, prior to 16th November, 1995 or sanctioned thereafter in respect of cases arising before that date. (2) All administrative expenses shall be met from the Central Administration Account as specified in paragraph 32 of the Employees' Provident Funds Scheme, 2026: Provided that the cost of remittance of pension shall be charged to the Pension Fund. 22. Maintenance of accounts. -The Central Board shall maintain, in respect of this Scheme, a consolidated income and expenditure account and a consolidated balance sheet, in the common format of annual accounts approved by the Central Government. 23. Audit. -The accounts of the Pension Fund, including the administrative expenses incurred in the operation of this Scheme, shall be audited in accordance with the instructions issued by the Central Government in consultation with the Comptroller and Auditor-General of India. 24. Rounding up of benefits. - All items of be....
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.... establishments from the operation of this Scheme under section 143 of the Code, if the employees of the establishments- (i) are members of any other pension scheme; (ii) are proposed to be members of a pension scheme providing pensionary benefits at par with or more favourable than, the benefits provided under this Scheme. (2) Where exemption is granted under sub-paragraph (1), the withdrawal benefits standing to the credit of the employees of such establishment under the Family Pension Scheme, 1971 or Employees' Pension Scheme 1995, shall, subject to the consent of the employees, be transferred to the pension fund of the establishment. (3) An application for exemption under this paragraph shall be presented to the Regional Provident Fund Commissioner having jurisdiction, together with a copy of the pension scheme of the establishment and other relevant documents, as may be called for. (4) The Regional Provident Fund Commissioner shall scrutinise the application, obtain the recommendations of the Central Provident Fund Commissioner and submit to the appropriate Government for decision. (5) Pending disposal of an application for exemption under this pa....
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..... Payment of pension in case of person charged with murder. - (1) Where a person, who in the event of the death of a member of the Pension Fund is eligible to receive pension under paragraph 12 or paragraph 15, is charged with the offence of murdering the member or abetting the commission of such an offence, the claims to receive pension shall remain suspended until the conclusion of the criminal proceedings instituted against the person for such offence. (2) Upon conclusion of the criminal proceedings referred to in sub-paragraph (1),- (i) if the person concerned is convicted for the murdering or abetting in the murder of the member, the person shall be debarred from receiving pension, which shall be payable to other eligible members of the family of the deceased member; or (ii) if the person is acquitted of the charge of murdering or abetting the murder of the member, pension benefit shall be payable to the person. 36. Special provisions in respect of International Workers. - Notwithstanding anything contained in this Scheme, the following provisions shall be applicable to International worker, namely:- (1) The eligible service shall be determined as fo....
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....r benefits under the Scheme shall be disbursed as per the terms and conditions specified in the said agreement. (5) The Commissioner shall perform all such functions as are assigned to the Employees' Provident Fund Organisation under a social security agreement entered into between the Government of India and any other country as per the terms and conditions specified therein. TABLE - I [See paragraph 13(1) and 32(1)(i)] (WITHDRAWAL BENEFIT) No. of full years' contribution paid Proportion of wage payable at cessation of membership (1) (2) 1 0.2 2 0.41 3 0.62 4 0.84 5 1.06 6 1.29 7 1.51 8 1.75 9 1.98 10 2.23 11 2.47 12 2.72 13 2.98 14 3.24 15 3.51 16 3.78 17 4.05 18 4.34 19 4.62 20 4.92 21 5.21 22 5.52 23 5.83 24 6.14 25 6.46 26 6.79 27 7.12 28 7.46 29 7.81 30 8.16 31 8.52 32 8.89 33 9.26 34 9.64 35 10.03 36 10.43 37 10.83 38 11.24 39 11.66 40 12.08 TABLE - II [See paragraphs 12(3), 13(1), 32(1)(i)] (FACTOR FOR COM....
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....461 3500 1481 3550 1501 3600 1521 3650 1541 3700 1561 3750 1581 3800 1601 3850 1621 3900 1641 3950 1661 4000 1681 4050 1701 4100 1721 4150 1741 4200 1751 4250 1761 4300 1771 4350 1781 4400 1791 4450 1801 4500 1811 4550 1821 4600 1831 4650 1841 4700 1851 4750 1861 4800 1871 4850 1881 4900 1891 4950 1896 5000 1901 5050 1906 5100 1911 5150 1916 5200 1921 5250 1926 5300 1931 5350 1936 5400 1941 5450 1946 5500 1951 5550 1956 5600 1961 5650 1966 5700 1971 5750 1976 5800 1981 5850 1986 5900 1991 5950 1996 6000 2001 6050 2006 6100 2011 6150 2016 6200 2021 6250 2026 6300 2031 6350 2036 6400 2041 6450 2046 6500 2051.] [6,550 2,056 6,600 2,061 6,650 2,066 6,700 2,071 6,750 2,076 6,800 2,081 6,850 2,086 6,900 2,091 6,950 2,096 7,000 2,101 7,050 2,106 7,100 2,111 ....
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....0 2,761 13,650 2,766 13,700 2,771 13,750 2,776 13,800 2,781 13,850 2,786 13,900 2,791 13,950 2,796 14,000 2,801 14,050 2,806 14,100 2,811 14,150 2,816 14,200 2,821 14,250 2,826 14,300 2,831 14,350 2,836 14,400 2,841 14,450 2,846 14,500 2,851 14,550 2,856 14,600 2,861 14,650 2,866 14,700 2,871 14,750 2,876 14,800 2,881 14,850 2,886 14,900 2,891 14,950 2,896 15,000 or more 2,901.] TABLE - IV [See paragraphs 13(1) and 36(3)] Return of contribution on exit from the employment Months of Service Proportion of wages at exit 1 0.08 2 0.17 3 0.25 4 0.33 5 0.42 6 0.51 7 0.60 8 0.68 9 0.77 10 0.85 11 0.94 12 1.02 13 1.10 14 1.18 15 1.26 16 1.34 17 1.42 18 1.51 19 1.59 20 1.67 21 1.75 22 1.83 23 1.91 24 1.99 25 2.07 26 2.16 27 2.24 28 2.32 29 2.40 30 2.49 31 2.57 32 2.65 33 2.73 34 2.82 35 2.90 36 2....
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.... Out of (d) above, No. of excluded employees (f) No. of Pension Fund members as at the end of the month [Please furnish the above-mentioned details unit wise situated as different places. Attach separate sheet, if necessary] 3. CONSTITUTION OF BOARD OF TRUSTEES (a) Date on which the present Board was Constituted DD MM YYYY (b) Its term YEARS (c) Total number of Trustees (i) Employees' Representatives (ii) Employer's Representatives 4. WAGES, CONTRIBUTIONS, ETC. (a) Amount of gross wages liable to Pension Contribution Rs. (b) Rate of contribution to Pension Fund % (c) Amount of Pension contribution to be transferred for the current month Rs. (d) Amount of arrears due, if any, for transfer to the Board of Trustees at the end of the previous month Rs. (e) Total of (c) & (d) Rs. (f) Amount actually transferred to the Board of Trustees Rs. (g) Balance due, if any, for transfer to the Board of Trustees [(e) - (f)] Rs. (h) Whether the interest payable under section 12....