The Employees’ Provident Fund Organization (EPFO) is a government organization that works for the interests of employees under the Ministry of Labor. EPFO launched EPS 95 i.e. Employee Pension Scheme 95 for people doing private jobs in the year 1995.
Under this scheme, both the employee and his company contribute. While on one hand the entire 12 percent of the employee’s share goes to the Provident Fund, on the other hand, out of 12 percent of the company’s money, 3.67% goes to the employee’s Provident Fund and 8.33% goes to EPS.
To be eligible for EPS, it is necessary to work for 10 years
The money that goes into EPS is given to the employee as pension every month after his retirement. To be eligible for EPS, the employee has to continue contributing for at least 10 years. When an employee completes 10 years of service, he becomes eligible for EPS. Under EPS, employees get a minimum pension of Rs 1000 and a maximum of Rs 7500 every month on completion of 58 years of age. But here we will know whether pension can be obtained before the age of 58.
What is the eligibility to get pension before the age of 58
According to the rules of EPFO, if you contribute to EPS while working for 10 years and your age is more than 50 and less than 58, then you can get pension even earlier. But here you have to keep one thing in mind that if you get pension before the age of 58, then the amount of pension you get every month will be reduced by 4 percent. Apart from this, if you take pension after the age of 60, then you get the full amount, which increases at the rate of 4 percent every year.
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