PF Account Pension Rules: Any person who works in the private sector in India has a PF account. PF accounts in India are managed by the Employees Provident Fund Organization (EPFO). 12% of the PF account holder’s salary is deposited in the PF account. The same amount is contributed by the employer i.e. the company.
In which 8.33% goes to the pension fund and 3.67% goes to the PF account. Often a question comes in the mind of many people. If a PF account holder works for 60 years. Then how much pension will he get after 60 years. What are the rules of EPFO regarding this. So let us tell you its complete calculation.
EPFO rules regarding pension
According to EPFO rules, if someone invests in a PF account for 10 years, he becomes eligible to get pension. After 50 years, a PF account holder can claim pension. But if he claims pension before 58 years, then there will be a deduction of 4% every year. That is, if someone claims pension at the age of 54, then there will be a deduction of 16%.
But if someone does not claim pension even after 58 years, then at the age of 60, he will get 8% more pension at the rate of 4% increase every year. Let us tell you that under the current rules of EPFO, the maximum limit of pensionable salary is Rs 15000. That is, every month only Rs 15000 X 8.33/100 = 1250 can be deposited in your PF pension fund.
After 60 years, you will get this much pension
If you started working at the age of 23 and you are retiring at the age of 58, then you have worked for a total of 35 years. Under the old pension scheme of EPFO, the maximum pensionable salary is Rs 15,000. When any employee leaves UPS, his pensionable salary for the last 60 months is his average monthly salary.
It will be calculated like this:
Pensionable Salary X Pensionable Service/70 = Monthly Pension
15000 X 35/70 = 7500
On the other hand, if you do not claim pension till the age of 8 years, then you get pension at an extra rate of 8 percent.
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