India: Pension Fund Clarifies 20-Year ‘Weightage'Premium

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By Madhur Singh

Aug. 15—The Employees' Provident Fund Organization has issued a clarification to avoid disputes over pension calculations for workers with 20 years of contributions.

In a July 25 communique, S.K. Thakur, Additional Central Provident Fund commissioner in charge of pensions, clarified that an employee who has been a member of the Employees’ Pension Scheme (1995) for 20 or more years is entitled to two years' “weightage”—two years added to the “pensionable service” period used to calculate pension benefits. Contributions to the previous Employees Family Pension Scheme (1971) will also be considered pensionable service.

For example, an employee who contributed to the Employees Family Pension Scheme (1971) for five years and the Employees’ Pension Scheme (1995) for 15 years will be considered to have 20 years of pensionable service and qualify for the additional two-year weightage.

This is a positive step in preempting disputes and will be good for employees, the Labour and Employment Law Division of law firm Archer and Angel told Bloomberg BNA in an Aug. 4 e-mail.

To contact the reporter on this story: Madhur Singh in Chandigarh at

To contact the editor responsible for this story: Rick Vollmar at

For More Information

For more information on Indian HR law and regulation, see the India primer.

The July 25 Provident Fund communique is available


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