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| Scheme Name | 1-Year Return | Invest Now | Fund Category | Expense Ratio |
|---|---|---|---|---|
| Axis Nifty 50 Index Fund | +32.80% | Invest Now | Equity: Large Cap | 0.12% |
| Axis Nifty 100 Index Fund | +38.59% | Invest Now | Equity: Large Cap | 0.21% |
| Axis Nifty Next 50 Index Fund | +71.83% | Invest Now | Equity: Large Cap | 0.25% |
| Axis Nifty 500 Index Fund | — | Invest Now | Equity: Flexi Cap | 0.10% |
| Axis Nifty Midcap 50 Index Fund | +46.03% | Invest Now | Equity: Mid Cap | 0.28% |
These applicants currently contribute on a fixed threshold of ₹15,000 per month, despite having higher actual basic salaries.
The apex court allowed eligible employees to contribute based on their actual wages to receive a larger pension post-retirement.
What is the high pension option?
The Employees’ Pension Scheme (EPS-95), introduced in 1995, provides a social security cover for organised sector employees. By default, employers contribute 8.33% of wages to EPS, capped at a monthly wage of ₹15,000.
Under the new ruling, employees can now contribute based on their actual basic pay, increasing their eventual pension amount.
EPFO’s online facility for higher pension
In line with the Supreme Court order, EPFO launched an online facility for submitting joint options to opt for a higher pension.
As of now, over 1.7 million applications have been validated, according to Shobha Karandlaje, Minister of State for Labour & Employment.
How does EPS-95 work?
The EPS-95 is a Defined Contribution-Defined Benefit scheme. The pension fund receives contributions as follows:
- 8.33% of wages from the employer.
- 1.16% of wages from the central government (capped at ₹15,000/month).
The fund is annually valued to ensure long-term sustainability. Employees are eligible for pensions when they reach 58 years of age.
Government’s initiatives for EPS-95 members
The government introduced a minimum pension of ₹1,000/month in 2014, providing additional budgetary support. To streamline processes, EPFO also launched PRAYAAS, an initiative to hand over Pension Payment Orders (PPOs) to EPS-95 members on the day of superannuation.
–With PTI inputs
First Published: Dec 17, 2024 10:09 AM IST
