Don't bank just on EPS as its pension payouts are paltry, say analysts

The Employees’ Provident Fund Organisation (EPFO) is planning to bring out a new pension product for organised sector workers who get basic wages of more than Rs 15,000 per month and are not mandatorily covered under its Employees’ Pension Scheme 1995 (EPS-95), according to media reports.

At present, it is mandatory for employees who earn a basic salary plus dearness allowance (DA) of up to Rs 15,000 to enrol in EPS. The key drawback of the current scheme, and the reason a new scheme is being formulated, is that the pension is paltry. 

Current scheme

The employee and the employer each contribute 12