The Employees Provident Fund (EPF) is the main scheme under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. The scheme is managed under the aegis of Employees' Provident Fund Organisation (EPFO). It covers every establishment in which 20 or more persons are employed. Under EPF scheme, an employee has to pay a certain contribution towards the scheme and an equal contribution is paid by the employer. The employee gets a lump sum amount including self and employer’s contribution with interest on both, on retirement.
The contribution paid by the TSRTC is 12% of basic wages plus dearness allowance plus retaining allowance. An equal contribution is payable by the employee also. Out of employer’s contribution, 8.33% will be diverted to Employees’ Pension Scheme, but it is calculated on Rs 15,000. So, for every employee with basic pay equal to Rs 15,000 or more, the diversion is Rs 1,250 each month into EPS. If the basic pay is less than Rs 15000 then 8.33% of that full amount will go into EPS. The balance will be retained in the EPF scheme. On retirement, the employee will get his full share plus the balance of Employer’s share retained to his credit in EPF account. With effective from Sep 2014, employee whose ‘pay’ is more than Rs. 15,000 per month at the time of joining, is not eligible for EPS scheme.
Employees’ Pension Scheme (EPS), is a social security scheme provided by the Employees’ Provident Fund Organisation (EPFO). EPS was launched in 1995 and allowed existing and new EPF members to join the scheme. The scheme makes provisions for employees working in the organized sector for a pension after their retirement at the age of 58 years.
Each member shall contribute monthly 12% of Basic Pay + DA and an equal contribution is payable by the employer also while in service or upto the date of his/her ceasing to be in service of the Corporation by retirement, resignation, removal, dismissal, voluntary retirement, whichever is earlier.