New Delhi, May 29 -- Mr. A worked with employer 1 for a couple of years before joining employer 2. There was a gap of two months before he joined the second company, which made Mr. A eligible for withdrawing his employee provident fund (EPF). He did so. But he was not aware of the employee pension scheme (EPS).
An employee's 12% basic salary goes into EPF as the employee contribution. The employer matches the employer contribution. But what many miss out on is that only 3.67% of the employer contribution is allocated to EPF while the rest 8.33% goes into EPS.
Being ignorant of EPS means Mr. A would lose out on this contribution done in his name. Employers or the Employees' Provident Fund Organisation (EPFO) are unlikely to make him awar...
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