EPFO Pension: Provident fund is the best way to get pension for those working in private sector. Because in this scheme you do not have to deposit even a single rupee for pension. Yes, money is given for your pension by the institution or company in which you work. Because the 12 percent PF that you deduct is deposited in your PF account. A
t the same time, the 12 percent amount that the company deposits, most of it is deposited in your pension account. But this pension is not available to any account holder. There are certain criteria which you have to fulfill for this. Through this news, you have been told about the rules of PF pension. Â
Who is entitled for pension
1. The first condition for getting pension is that you should be a member of EPFO.
2. Apart from this, it is mandatory for you to work in any company or institution for at least 10 years. It is not necessary that you do this for the whole 10 years in the same company. That is, in total you have to work for 10 years.
3. There are two options for getting pension. The first option is that you have completed 58 years of age, the second option is that you can get pension even after completing 50 years of age. But let us tell you that for this you have to fill Form 10D and if you take pension after 50 years, then the pension is also less.Â
4. After the death of the employee, the family members get the pension. But the pension amount changes.
5. If you want, you can also postpone the pension for two years till the age of 60 years, after which you will get pension at the rate of 4 percent per annum.
Who deposits money in pension account?Â
In the PF account, 12 percent of the basic salary and DA of the employee is deposited. The contribution of the employer is also the same. But, a part of the contribution of the employer is deposited in the EPS ie Pension Fund. Let us tell you that 8.33% contribution is deposited for pension. However, the maximum limit for PF to be merged by the company is Rs 15,000. In such a situation, only a maximum of Rs 1250 can be deposited in the pension fund every month.
Pension is available up to Rs 7500
According to the rules, if the basic salary and DA of an employee is Rs 15,000 or more, then Rs 1250 will be deposited in the pension fund. If the basic salary and DA is 10 thousand rupees, then the contribution will be only 833 rupees. If understood in simple language, 8.33 percent of your basic salary and DA will go to the pension account. In such a situation, after retirement, the employee can get a pension of Rs 7,500 as per the rules.Â
