InvestorQ : I have heard that there is pension paid to an employee under Employees’ Pension Scheme even if the employee hasn’t completed the mandatory 10 years of service Can you throw more light on it?
ramya Bhaskaran made post

I have heard that there is pension paid to an employee under Employees’ Pension Scheme even if the employee hasn’t completed the mandatory 10 years of service Can you throw more light on it?

Answer
user profile image
Anusha Savla answered.
1 year ago


Yes. This is true.

The EPS makes provisions for employees working in the organized sector to receive pension after their retirement at the age of 58 years, if the individual has completed the mandatory 10 years of service.

However, this rule is waived off if the individual becomes totally and permanently disabled. In such a case the individual is entitled to a monthly pension irrespective of the fact that he/she has not served the minimum service period of 10 years.

The member then becomes eligible for the monthly pension from the date of permanent disablement and is payable for his lifetime.

Please note, however, the member might have to undergo a medical examination to check whether he/she is unfit for the job that he/she was doing before becoming disabled.